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Missouri Senate Bill SB462

Missouri 2025 Regular Session

Missouri Senate Bill SB462 Compare Versions

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1-1150S.02C
2- 1
3-SENATE COMMITTEE SUBSTITUTE
4-FOR
1+
2+FIRST REGULAR SESSION
53 SENATE BILL NO. 462
4+103RD GENERAL ASSEMBLY
5+INTRODUCED BY SENATOR GREGORY (21).
6+1150S.01I KRISTINA MARTIN, Secretary
67 AN ACT
7-To amend chapter 135, RSMo, by adding thereto one new
8-section relating to a tax credit for qualified
9-railroad infrastructure investments.
8+To amend chapter 135, RSMo, by adding thereto one new section relating to a tax credit for
9+qualified railroad infrastructure investments.
1010
1111 Be it enacted by the General Assembly of the State of Missouri, as follows:
12- Section A. Chapter 135, RSMo, is amended by adding thereto
13-one new section, to be known as section 135.1210, to read as
14-follows:
15- 135.1210. 1. As used in this section, the following
16-terms mean:
17- (1) "Eligible customer", a person who uses any
18-railroad or railroad -related property, facilities, or
19-structures located wholly or partly within the state of
20-Missouri to directly or indirectly transport property,
21-commodities, or goods, or who is served by any railroad, or
22-who stores railcars o n any railroad in Missouri;
23- (2) "Eligible taxpayer":
24- (a) Any short line railroad company located wholly or
25-partly in the state of Missouri that is classified by the
26-United States Surface Transportation Board as a Class II or
27-Class III railroad; or
28- (b) Any owner or lessee of a rail siding, industrial
29-spur, or industry track located on or adjacent to any
30-railroad in the state of Missouri;
31-and subject to the state income tax imposed under chapter
32-143, 147, or 148, excluding the withhold ing tax imposed
33-under sections 143.191 to 143.265, who made qualified
34-railroad track expenditures in Missouri or qualified new
35- 2
36-rail infrastructure expenditures in Missouri during the tax
37-year for which a credit under this section is claimed;
38- (3) "Eligible vendor", a person who provides railroad -
39-related services directly to an eligible taxpayer;
40- (4) "Person", the same meaning as defined under
41-section 1.020;
42- (5) "Qualified amount", for any eligible taxpayer in a
43-given tax year, an amo unt equal to fifty percent of an
44-eligible taxpayer's qualified railroad track expenditures or
45-qualified new rail infrastructure expenditures, provided
46-that:
47- (a) For qualified railroad track expenditures, the
48-amount of tax credit shall not exceed an amount equal to the
49-product of five thousand dollars multiplied by the number of
50-miles of railroad track owned or leased in the state by a
51-Class II or Class III railroad as of the close of the tax
52-year; and
53- (b) For qualified new rail infrastru cture
54-expenditures, the amount of tax credit shall not exceed one
55-million dollars for each new rail -served customer project of
56-an eligible taxpayer;
57- (6) "Qualified new rail infrastructure expenditures",
58-gross expenditures for new rail infrastruct ure by an
59-eligible taxpayer, which includes the construction of new
60-track infrastructure such as industrial leads, switches,
61-spurs, sidings, rail loading docks, and transloading
62-structures involved with servicing new customer locations or
63-expansions by any railroad located in Missouri;
64- (7) "Qualified railroad expenditures", gross
65-expenditures for maintenance, reconstruction, or replacement
66-of railroad infrastructure, including track, roadbed,
67-bridges, industrial leads and sidings, and track -related
68-structures owned or leased by a Class II or Class III
69- 3
70-railroad located in Missouri. "Qualified railroad
71-expenditures" does not include expenditures used to generate
72-a federal tax credit or expenditures funded by a state or
73-federal grant;
74- (8) "Railroad-related services", includes, but is not
75-limited to, the following: transport of freight by rail;
76-loading and unloading of freight transported by rail;
77-railroad bridge services; railroad track construction;
78-provision of railroad track mate rial or equipment;
79-locomotive or freight train car leasing or rental; provision
80-of railroad financial services, including banking or
81-insurance; maintenance of a railroad's right -of-way,
82-including vegetation control; and freight train car repair,
83-rehabilitation, or remanufacturing repair services;
84- (9) "Tax credit", a credit against the tax otherwise
85-due under chapter 143, 147, or 148, excluding withholding
86-tax imposed under sections 143.191 to 143.265.
87- 2. For all tax years beginning on or after January 1,
88-2026, an eligible taxpayer shall be allowed to claim a
89-nonrefundable tax credit for qualified railroad track
90-expenditures in Missouri or for qualified new rail
91-infrastructure expenditures in Missouri against the
92-taxpayer's state tax l iability in an amount equal to the
93-taxpayer's qualified amount.
94- 3. An eligible taxpayer who seeks to claim a tax
95-credit under this section shall submit a certificate of
96-eligibility to the Missouri department of economic
97-development after completi on of the qualified railroad
98-expenditures or qualified new rail infrastructure
99-expenditures. The certificate shall include the number of
100-miles of railroad track owned or leased in this state and a
101-description of the amount of qualified railroad expend itures
102-or qualified new rail infrastructure expenditures
103- 4
104-completed. The certificate shall be made on forms and in
105-the manner prescribed by the department and considered in
106-the order received.
107- 4. If the department of economic development
108-determines that the taxpayer meets the requirements to claim
109-a tax credit under this section, the department may issue a
110-certificate of eligibility to the eligible taxpayer. The
111-certificate shall be numbered for identification and declare
112-its date of issuance and the amount of the tax credit
113-allowed under this section.
114- 5. (1) The cumulative amount of tax credits under
115-this section authorized for qualified railroad track
116-expenditures in this state shall not exceed four million
117-five hundred thousand dollars per calendar year. If the
118-amount of tax credits claimed in a calendar year under this
119-section exceeds four million five hundred thousand dollars,
120-tax credits shall be allowed based on the order in which
121-they are claimed.
122- (2) The cumulative amount of tax credits under this
123-section authorized for qualified new rail infrastructure
124-expenditures in this state shall not exceed five million
125-dollars per calendar year. If the amount of tax credits
126-claimed in a calendar year under this section exceeds five
127-million dollars, tax credits shall be allowed based on the
128-order in which they are claimed.
129- 6. Any unused portion of a tax credit allowed under
130-this section may be carried forward for up to five
131-subsequent tax years immediately foll owing the tax year the
132-credit was allowed.
133- 7. (1) Subject to the requirements of this
134-subsection, an eligible taxpayer who earns and is entitled
135-to the credit or to an unused portion of the credit allowed
136-by this section may transfer all or a po rtion of the unused
137- 5
138-credit by written agreement to any eligible customer,
139-eligible vendor, or any taxpayer subject to tax imposed
140-under chapter 143, 147, or 148, excluding withholding tax
141-imposed under sections 143.191 to 143.265, at any time
142-during the year in which the credit is earned and the five
143-years following the year of the qualified expenditures. The
144-taxpayer originally allowed the tax credit and the
145-subsequent transferee shall jointly file a copy of the
146-written credit transfer agreement with the department of
147-revenue. The agreement shall include the name, address, and
148-taxpayer identification number of the parties to the
149-transfer; the amount of the credit being transferred; the
150-year the credit was originally allowed to the transferrin g
151-taxpayer; and the tax year or years for which the credit may
152-be claimed. In the event of such a transfer, the transferee
153-may claim the credit on the transferee's income tax return
154-originally filed during the calendar year in which the
155-transfer takes place and in the case of carryover of the
156-credit, on the transferee's returns for the number of years
157-of carryover available to the transferor at the time of the
158-transfer unless earlier exhausted.
159- (2) In the event that after the transfer the
160-department of revenue determines that the amount of credit
161-properly available under this section is less than the
162-amount claimed by the transferor of the credit or that the
163-credit is subject to recapture, the department shall assess
164-the amount of oversta ted or recaptured credit as taxes due
165-from the transferor and not the transferee. The assessment
166-shall be made in the manner provided for a deficiency in
167-taxes under state law.
168- 8. The department of economic development shall
169-prepare an annual re port for the general assembly outlining
170-tax credit transfers that take place each calendar year,
171- 6
172-listing the qualified railroad expenditures and qualified
173-new rail infrastructure expenditures for each eligible
174-taxpayer and a statement summarizing the i nvestments made by
175-the eligible taxpayer.
176- 9. The department of economic development may
177-promulgate rules governing the allowance of the income tax
178-credit provided for in this section, including provisions
179-for the verification of the timeliness of a claim, the
180-process and documentation required for the department of
181-economic development to approve an income tax credit for
182-qualified railroad expenditures or qualified new rail
183-infrastructure expenditures, and any documentation that the
184-department of economic development requires in order to
185-determine that an eligible taxpayer, eligible customer, or
186-eligible vendor meets the requirements of this section. In
187-addition to other needed rules, the department of economic
188-development may promulgate rules prescribing, in the case of
189-S corporations, partnerships, trusts, or estates, a method
190-of attributing the credit under this section to the
191-shareholders, partners, or beneficiaries in proportion to
192-their share of the income from the S corporation,
193-partnership, trust, or estate.
194- 10. The department of revenue and the department of
195-economic development shall promulgate all necessary rules
196-and regulations for the administration of this section
197-including, but not limited to, rules relating to the
198-verification of a taxpayer's qualified amount. Any rule or
199-portion of a rule, as that term is defined in section
200-536.010, that is created under the authority delegated in
201-this section shall become effective only if it complies with
202-and is subject to all of the provisions of chapter 536 and,
203-if applicable, section 536.028. This section and chapter
204-536 are nonseverable and if any of the powers vested with
205- 7
206-the general assembly pursuant to chapter 536 to review, to
207-delay the effective date, or to disapprove and annul a rule
208-are subsequently held unconstitutional, then the grant of
209-rulemaking authority and any rule proposed or adopted after
210-August 28, 2025, shall be invalid and void.
211- 11. Under section 23.253 of the Missouri sunset act:
212- (1) The provisions of the new program authorized under
213-this section shall automatically sunset December thirty -
214-first six years after the effective date of this section,
215-unless reauthorized by an act of the general assembly;
216- (2) If such program is reauthorized, the program
217-authorized under this section shall automatically sunset
218-December thirty-first twelve years after the effective date
219-of the reauthorization of this section; and
220- (3) This section shall terminate on September first of
221-the calendar year immediately following the calendar year in
222-which the program authorized under this section is sunset.
12+ Section A. Chapter 135, RSMo, is amended by adding thereto 1
13+one new section, to be known as section 135.1210, to read as 2
14+follows:3
15+ 135.1210. 1. As used in this section, the following 1
16+terms mean: 2
17+ (1) "Eligible customer", a person who uses any 3
18+railroad or railroad -related property, facilities, or 4
19+structures located wholly or partly within the state of 5
20+Missouri to directly or indirectly transport property, 6
21+commodities, or goods, or who is served by any railroad, or 7
22+who stores railcars on any railroad in Missouri; 8
23+ (2) "Eligible taxpayer": 9
24+ (a) Any short line railroad company located wholly or 10
25+partly in the state of Missouri that is classified by the 11
26+United States Surface Transportation Board as a Class II or 12
27+Class III railroad; or 13
28+ (b) Any owner or lessee of a rail siding, industrial 14
29+spur, or industry track located on or adjacent to any 15
30+railroad in the state of Missouri; 16 SB 462 2
31+and subject to the state income tax imposed under chapter 17
32+143, 147, or 148, excluding the withholding tax imposed 18
33+under sections 143.191 to 143.265, who made qualified 19
34+railroad track expenditures in Missouri or qualified new 20
35+rail infrastructure expenditures in Missouri during the tax 21
36+year for which a credit under this section is claimed; 22
37+ (3) "Eligible vendor", a person who provides railroad - 23
38+related services directly to an eligible taxpayer; 24
39+ (4) "Person", the same meaning as defined under 25
40+section 1.020; 26
41+ (5) "Qualified amount", for any eligible taxpayer in a 27
42+given tax year, an amount equal to fifty percent o f an 28
43+eligible taxpayer's qualified railroad track expenditures or 29
44+qualified new rail infrastructure expenditures, provided 30
45+that: 31
46+ (a) For qualified railroad track expenditures, the 32
47+amount of tax credit shall not exceed an amount equal to the 33
48+product of five thousand dollars multiplied by the number of 34
49+miles of railroad track owned or leased in the state by a 35
50+Class II or Class III railroad as of the close of the tax 36
51+year; and 37
52+ (b) For qualified new rail infrastructure 38
53+expenditures, the amo unt of tax credit shall not exceed one 39
54+million dollars for each new rail -served customer project of 40
55+an eligible taxpayer; 41
56+ (6) "Qualified new rail infrastructure expenditures", 42
57+gross expenditures for new rail infrastructure by an 43
58+eligible taxpayer, which includes the construction of new 44
59+track infrastructure such as industrial leads, switches, 45
60+spurs, sidings, rail loading docks, and transloading 46
61+structures involved with servicing new customer locations or 47
62+expansions by any railroad located in Mi ssouri; 48 SB 462 3
63+ (7) "Qualified railroad expenditures", gross 49
64+expenditures for maintenance, reconstruction, or replacement 50
65+of railroad infrastructure, including track, roadbed, 51
66+bridges, industrial leads and sidings, and track -related 52
67+structures owned or l eased by a Class II or Class III 53
68+railroad located in Missouri. "Qualified railroad 54
69+expenditures" does not include expenditures used to generate 55
70+a federal tax credit or expenditures funded by a state or 56
71+federal grant; 57
72+ (8) "Railroad-related services", includes, but is not 58
73+limited to, the following: transport of freight by rail; 59
74+loading and unloading of freight transported by rail; 60
75+railroad bridge services; railroad track construction; 61
76+provision of railroad track material or equipment; 62
77+locomotive or freight train car leasing or rental; provision 63
78+of railroad financial services, including banking or 64
79+insurance; maintenance of a railroad's right -of-way, 65
80+including vegetation control; and freight train car repair, 66
81+rehabilitation, or remanufacturin g repair services; 67
82+ (9) "Tax credit", a credit against the tax otherwise 68
83+due under chapter 143, 147, or 148, excluding withholding 69
84+tax imposed under sections 143.191 to 143.265. 70
85+ 2. For all tax years beginning on or after January 1, 71
86+2026, an eligible taxpayer shall be allowed to claim a 72
87+nonrefundable tax credit for qualified railroad track 73
88+expenditures in Missouri or for qualified new rail 74
89+infrastructure expenditures in Missouri against the 75
90+taxpayer's state tax liability in an amount equal to the 76
91+taxpayer's qualified amount. 77
92+ 3. An eligible taxpayer who seeks to claim a tax 78
93+credit under this section shall submit a certificate of 79
94+eligibility to the Missouri department of economic 80 SB 462 4
95+development after completion of the qualified railroad 81
96+expenditures or qualified new rail infrastructure 82
97+expenditures. The certificate shall include the number of 83
98+miles of railroad track owned or leased in this state and a 84
99+description of the amount of qualified railroad expenditures 85
100+or qualified new rai l infrastructure expenditures 86
101+completed. The certificate shall be made on forms and in 87
102+the manner prescribed by the department and considered in 88
103+the order received. 89
104+ 4. If the department of economic development 90
105+determines that the taxpayer meets the requirements to claim 91
106+a tax credit under this section, the department may issue a 92
107+certificate of eligibility to the eligible taxpayer. The 93
108+certificate shall be numbered for identification and declare 94
109+its date of issuance and the amount of the tax credit 95
110+allowed under this section. 96
111+ 5. (1) The cumulative amount of tax credits under 97
112+this section authorized for qualified railroad track 98
113+expenditures in this state shall not exceed four million 99
114+five hundred thousand dollars per calendar year. If the 100
115+amount of tax credits claimed in a calendar year under this 101
116+section exceeds four million five hundred thousand dollars, 102
117+tax credits shall be allowed based on the order in which 103
118+they are claimed. 104
119+ (2) The cumulative amount of tax credits und er this 105
120+section authorized for qualified new rail infrastructure 106
121+expenditures in this state shall not exceed ten million 107
122+dollars per calendar year. If the amount of tax credits 108
123+claimed in a calendar year under this section exceeds ten 109
124+million dollars, tax credits shall be allowed based on the 110
125+order in which they are claimed. 111 SB 462 5
126+ 6. Any unused portion of a tax credit allowed under 112
127+this section may be carried forward for up to five 113
128+subsequent tax years immediately following the tax year the 114
129+credit was allowed. 115
130+ 7. (1) Subject to the requirements of this 116
131+subsection, an eligible taxpayer who earns and is entitled 117
132+to the credit or to an unused portion of the credit allowed 118
133+by this section may transfer all or a portion of the unused 119
134+credit by written agreement to any eligible customer, 120
135+eligible vendor, or any taxpayer subject to tax imposed 121
136+under chapter 143, 147, or 148, excluding withholding tax 122
137+imposed under sections 143.191 to 143.265, at any time 123
138+during the year in which the credit is earned and the five 124
139+years following the year of the qualified expenditures. The 125
140+taxpayer originally allowed the tax credit and the 126
141+subsequent transferee shall jointly file a copy of the 127
142+written credit transfer agreement with the department of 128
143+revenue. The agreement shall include the name, address, and 129
144+taxpayer identification number of the parties to the 130
145+transfer; the amount of the credit being transferred; the 131
146+year the credit was originally allowed to the transferring 132
147+taxpayer; and the tax year or years for which the credit may 133
148+be claimed. In the event of such a transfer, the transferee 134
149+may claim the credit on the transferee's income tax return 135
150+originally filed during the calendar year in which the 136
151+transfer takes place and in the case of car ryover of the 137
152+credit, on the transferee's returns for the number of years 138
153+of carryover available to the transferor at the time of the 139
154+transfer unless earlier exhausted. 140
155+ (2) In the event that after the transfer the 141
156+department of revenue determines that the amount of credit 142
157+properly available under this section is less than the 143 SB 462 6
158+amount claimed by the transferor of the credit or that the 144
159+credit is subject to recapture, the department shall assess 145
160+the amount of overstated or recaptured credit as ta xes due 146
161+from the transferor and not the transferee. The assessment 147
162+shall be made in the manner provided for a deficiency in 148
163+taxes under state law. 149
164+ 8. The department of economic development shall 150
165+prepare an annual report for the general assembly outlining 151
166+tax credit transfers that take place each calendar year, 152
167+listing the qualified railroad expenditures and qualified 153
168+new rail infrastructure expenditures for each eligible 154
169+taxpayer and a statement summarizing the investments made by 155
170+the eligible taxpayer. 156
171+ 9. The department of economic development may 157
172+promulgate rules governing the allowance of the income tax 158
173+credit provided for in this section, including provisions 159
174+for the verification of the timeliness of a claim, the 160
175+process and documentation required for the department of 161
176+economic development to approve an income tax credit for 162
177+qualified railroad expenditures or qualified new rail 163
178+infrastructure expenditures, and any documentation that the 164
179+department of economic development requ ires in order to 165
180+determine that an eligible taxpayer, eligible customer, or 166
181+eligible vendor meets the requirements of this section. In 167
182+addition to other needed rules, the department of economic 168
183+development may promulgate rules prescribing, in the case of 169
184+S corporations, partnerships, trusts, or estates, a method 170
185+of attributing the credit under this section to the 171
186+shareholders, partners, or beneficiaries in proportion to 172
187+their share of the income from the S corporation, 173
188+partnership, trust, or estat e. 174 SB 462 7
189+ 10. The department of revenue and the department of 175
190+economic development shall promulgate all necessary rules 176
191+and regulations for the administration of this section 177
192+including, but not limited to, rules relating to the 178
193+verification of a taxpaye r's qualified amount. Any rule or 179
194+portion of a rule, as that term is defined in section 180
195+536.010, that is created under the authority delegated in 181
196+this section shall become effective only if it complies with 182
197+and is subject to all of the provisions of c hapter 536 and, 183
198+if applicable, section 536.028. This section and chapter 184
199+536 are nonseverable and if any of the powers vested with 185
200+the general assembly pursuant to chapter 536 to review, to 186
201+delay the effective date, or to disapprove and annul a rule 187
202+are subsequently held unconstitutional, then the grant of 188
203+rulemaking authority and any rule proposed or adopted after 189
204+August 28, 2025, shall be invalid and void. 190
205+ 11. Under section 23.253 of the Missouri sunset act: 191
206+ (1) The provisions of the n ew program authorized under 192
207+this section shall automatically sunset December thirty - 193
208+first six years after the effective date of this section, 194
209+unless reauthorized by an act of the general assembly; 195
210+ (2) If such program is reauthorized, the program 196
211+authorized under this section shall automatically sunset 197
212+December thirty-first twelve years after the effective date 198
213+of the reauthorization of this section; and 199
214+ (3) This section shall terminate on September first of 200
215+the calendar year immediately f ollowing the calendar year in 201
216+which the program authorized under this section is sunset. 202
217+