Us Congress House Bill HB516

Us Congress 2025-2026 Regular Session

• Introduced: 1/16/25
• Refer: 1/16/25

Caption

To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

Impact

The bill proposes an inflation adjustment mechanism that would allow the $6,100 credit to increase annually based on cost-of-living adjustments starting in taxable years after 2025. This assures that the credit amount remains relevant and useful in the context of inflation, preventing its value from diminishing over time. By extending the qualified track maintenance expenditures cutoff date from January 1, 2015, to January 1, 2024, HB 516 further encourages ongoing track improvements and expenditures within a more current timeframe.

Summary

House Bill 516 seeks to amend the Internal Revenue Code of 1986 to enhance the railroad track maintenance credit. The primary goal of the bill is to increase the current credit amount from $3,500 to $6,100, thus providing greater financial support for railroad companies engaged in necessary maintenance activities. This modification is expected to incentivize railroad operators to invest more in their infrastructure, potentially leading to improved rail safety and efficiency across the country.

Contention

Potential points of contention surrounding HB 516 may include concerns regarding the allocation of federal tax credits and whether such incentives adequately address the needs of the railroad industry. Critics may argue that while increasing the maintenance credit is beneficial, it may not substantially impact the overall improvements needed in railroad infrastructure, which could require broader legislative actions. Additionally, discussions may arise concerning the prioritization of funding and tax credits for railroads compared to other infrastructure sectors, such as public transportation or highway systems.

Congress_id

119-HR-516

Policy_area

Taxation

Introduced_date

2025-01-16