A tax credit for rail infrastructure modernization. (FE)
Impact
If enacted, SB213 is expected to incentivize investments in rail infrastructure, thereby enhancing economic activity and transportation efficiency in Wisconsin. By providing financial support through tax credits, the bill aims to encourage railroads to maintain and upgrade their service capabilities, which could lead to increased freight capacity and potentially lower transportation costs for industries relying on rail transport. Moreover, the bill sets a clear regulatory framework that delineates the process for applying and claiming these credits, potentially streamlining the interaction between rail operators and the state government.
Summary
Senate Bill 213, introduced in the 2025 Wisconsin legislature, proposes a tax credit aimed at modernizing rail infrastructure within the state. This legislation allows class II and III railroads, as classified by the U.S. Surface Transportation Board, to claim credits for both maintenance and new rail infrastructure projects. Specifically, railroads can receive credits equal to fifty percent of their qualifying spending on maintenance and new infrastructure, with certain limitations and caps on the amount that can be claimed. Maintenance expenditures can be claimed up to a maximum defined by the railroad's mileage, while new infrastructure credits are capped at $2 million per project.
Contention
Discussions surrounding SB213 may center on the allocation of tax resources and the fiscal implications for the state budget. Critics may argue that the tax credits represent a substantial commitment of state funds, which could potentially detract from other transportation initiatives or infrastructure needs. Meanwhile, proponents will emphasize the long-term economic benefits of a more robust rail system, suggesting that modernizing rail infrastructure will lead to job creation and enhanced regional connectivity. The balance of these perspectives will likely play a crucial role in the bill's progression through the legislative process.
Creating an employee ownership conversion costs tax credit and an exemption for capital gains from the transfer of a business to employee ownership. (FE)
Creating a tax credit for expenses related to film production services and for capital investments made by a film production company, making an appropriation, and granting rule-making authority. (FE)