Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB219 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	2025 - 2026 LEGISLATURE
2	2	LRB-2618/1
3	3	KP:cdc
4	4	2025 ASSEMBLY BILL 219
5	5	April 23, 2025 - Introduced by Representatives NOVAK, TRANEL, ARMSTRONG,
6	6	DONOVAN, FRANKLIN, GUNDRUM, MELOTIK, MURSAU, PRONSCHINSKE,
7	7	SWEARINGEN and GUSTAFSON, cosponsored by Senators QUINN, FEYEN and
8	8	TOMCZYK. Referred to Committee on Transportation.
9	9
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g)
12	12	and 71.45 (2) (a) 10.; to create 71.07 (8t), 71.10 (4) (cu), 71.28 (8t), 71.30 (3)
13	13	(cu), 71.47 (8t), 71.49 (1) (cu) and 73.03 (78) of the statutes; relating to: a tax
14	14	credit for rail infrastructure modernization.
15	15	Analysis by the Legislative Reference Bureau
16	16	This bill creates an income and franchise tax credit for railroads that make
17	17	rail infrastructure and railroad maintenance expenditures. Under the bill, a
18	18	claimant that is classified by the U.S. Surface Transportation Board as a class II or
19	19	class III railroad may claim a rail infrastructure modernization credit that is equal
20	20	to the sum of the following amounts:
21	21	1. Fifty percent of the qualified short line railroad maintenance expenditures
22	22	made by the railroad. This portion of the credit is limited to an amount equal to
23	23	$5,000 multiplied by the number of miles of railroad track owned or leased by the
24	24	railroad. The bill defines Xqualified short line railroad maintenance expendituresY
25	25	as gross expenditures for railroad infrastructure rehabilitation or maintenance
26	26	improvements located in this state.
27	27	2. Fifty percent of the railroad[s qualified new rail infrastructure
28	28	expenditures. This portion of the credit is limited to $2,000,000 per project. The
29	29	bill defines Xqualified new rail infrastructure expendituresY as expenditures for rail
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33	33	4 2025 - 2026 Legislature
34	34	ASSEMBLY BILL 219
35	35	- 2 - LRB-2618/1
36	36	KP:cdc
37	37	SECTION 1
38	38	infrastructure and improvements in this state placed in service after December 31,
39	39	2024.
40	40	A claimant that owns or leases a rail siding, industrial spur, or industry track
41	41	may claim the portion of the credit described above for the claimant[s qualified new
42	42	rail infrastructure expenditures.
43	43	Before claiming a credit under the bill, a claimant must first apply to and
44	44	receive approval from the Department of Revenue to claim the credit. DOR may
45	45	approve up to $10,000,000 in total credits for qualified new rail infrastructure
46	46	expenditures for each tax year, and DOR must approve applications for credits on a
47	47	first-come, first-served basis.
48	48	For further information see the state fiscal estimate, which will be printed as
49	49	an appendix to this bill.
50	50	The people of the state of Wisconsin, represented in senate and assembly, do
51	51	enact as follows:
52	52	SECTION 1. 71.05 (6) (a) 15. of the statutes is amended to read:
53	53	71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
54	54	(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5i), (5j), (5k),
55	55	(5r), (5rm), (6n), (8t), and (10) and not passed through by a partnership, limited
56	56	liability company, or tax-option corporation that has added that amount to the
57	57	partnership[s, company[s, or tax-option corporation[s income under s. 71.21 (4) or
58	58	71.34 (1k) (g).
59	59	SECTION 2. 71.07 (8t) of the statutes is created to read:
60	60	71.07 (8t) RAIL INFRASTRUCTURE MODERNIZATION CREDIT. (a) Definitions. In
61	61	this subsection:
62	62	1. XClaimantY means a person who files a claim under this subsection and
63	63	who is one of the following:
64	64	a. A railroad company located wholly or partly in this state that is classified by
65	65	the federal surface transportation board as a class II or class III railroad for the
66	66	taxable year to which the claim applies.
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85	85	SECTION 2
86	86	b. An owner or lessee of a rail siding, industrial spur, or industry track on or
87	87	adjacent to a railroad in this state during the taxable year to which the claim
88	88	applies.
89	89	2. XQualified new rail infrastructure expendituresY means expenditures for
90	90	rail infrastructure and improvements in this state placed in service after December
91	91	31, 2024, including expenditures for the acquisition of right-of-way; engineering;
92	92	construction of new track such as industrial leads, switches, spurs, and sidings;
93	93	rehabilitation of existing inactive track to reinstate operation; loading dock
94	94	improvements; and transloading structures involved with servicing customer
95	95	locations or expansions.
96	96	3. XQualified short line railroad maintenance expendituresY means gross
97	97	expenditures for railroad infrastructure rehabilitation or maintenance
98	98	improvements located in this state, including but not limited to rail, tie plates, joint
99	99	bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings,
100	100	signs, safety barriers, crossing signals and gates, and related track structures.
101	101	(b) Filing claims. For taxable years beginning after December 31, 2024, and
102	102	before January 1, 2035, and subject to the limitations provided in this subsection, a
103	103	claimant may claim as a credit against the tax imposed under s. 71.02, up to the
104	104	amount of those taxes, all of the following:
105	105	1. An amount equal to 50 percent of the qualified short line railroad
106	106	maintenance expenditures made by the claimant during the taxable year to which
107	107	the claim relates if the claimant is classified by the federal surface transportation
108	108	board as a class II or class III railroad for the taxable year.
109	109	2. An amount equal to 50 percent of the qualified new rail infrastructure
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136	136	KP:cdc
137	137	SECTION 2
138	138	expenditures made by the claimant during the taxable year to which the claim
139	139	relates.
140	140	(c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified
141	141	short line railroad maintenance expenditures that are used to claim a tax credit
142	142	under federal law or that are funded by a federal or state grant.
143	143	2. The total amount of the credits under par. (b) 1. and ss. 71.28 (8t) (b) 1. and
144	144	71.47 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to
145	145	$5,000 multiplied by the number of miles of railroad track owned or leased by the
146	146	claimant in this state on December 31 of the taxable year to which the claim
147	147	applies.
148	148	3. The total amount of the credits under par. (b) 2. and ss. 71.28 (8t) (b) 2. and
149	149	71.47 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per
150	150	project application approved by the department.
151	151	4. No credit may be allowed under this subsection unless the claimant
152	152	submits an application to the department, at the time and in the manner
153	153	prescribed by the department, and the department approves the application. The
154	154	claimant shall submit a copy of the approved application with the claimant[s
155	155	return.
156	156	5. Partnerships, tax-option corporations, and limited liability companies may
157	157	not claim a credit under this subsection, but the eligibility for, and the amount of,
158	158	the credit are based on their expenditures made under par. (b). A partnership, tax-
159	159	option corporation, or limited liability company shall compute the amount of the
160	160	credit that each of its partners, shareholders, or members may claim and shall
161	161	provide that information to each of them. Partners of a partnership, shareholders
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185	185	24 2025 - 2026 Legislature
186	186	ASSEMBLY BILL 219
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188	188	KP:cdc
189	189	SECTION 2
190	190	of tax-option corporations, and members of limited liability companies may claim
191	191	the credit in proportion to their ownership interest.
192	192	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
193	193	credit under s. 71.28 (4), applies to the credit under this subsection.
194	194	2. If a credit computed under this subsection is not entirely offset against
195	195	Wisconsin income or franchise taxes otherwise due, the unused balance may be
196	196	carried forward and credited against Wisconsin income or franchise taxes
197	197	otherwise due for the following 5 taxable years to the extent not offset by these
198	198	taxes otherwise due in all intervening years between the year in which the
199	199	expenditure was made and the year in which the carry-forward credit is claimed.
200	200	(e) Transfer. Any person may sell or otherwise transfer the credit under par.
201	201	(b), in whole or in part, to another person who is subject to the taxes imposed under
202	202	s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
203	203	submits with the notification a copy of the transfer documents, and the department
204	204	certifies ownership of the credit with each transfer. The transferor may file a claim
205	205	for more than one taxable year on a form prescribed by the department to compute
206	206	all years of the credit under par. (b) at the time of the transfer request. The
207	207	transferee may first use the credit to offset tax in the taxable year of the transferor
208	208	in which the transfer occurs, and may use the credit only to offset tax in taxable
209	209	years otherwise allowed to be claimed and carried forward by the original claimant.
210	210	SECTION 3. 71.10 (4) (cu) of the statutes is created to read:
211	211	71.10 (4) (cu) Rail infrastructure modernization credit under s. 71.07 (8t).
212	212	SECTION 4. 71.21 (4) (a) of the statutes is amended to read:
213	213	71.21 (4) (a) The amount of the credits computed by a partnership under s.
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237	237	24 2025 - 2026 Legislature
238	238	ASSEMBLY BILL 219
239	239	- 6 - LRB-2618/1
240	240	KP:cdc
241	241	SECTION 4
242	242	71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
243	243	(5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), and (10) and passed through to partners
244	244	shall be added to the partnership[s income.
245	245	SECTION 5. 71.26 (2) (a) 4. of the statutes is amended to read:
246	246	71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
247	247	(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5g), (5i), (5j), (5k), (5r),
248	248	(5rm), (6n), (8t), and (10) and not passed through by a partnership, limited liability
249	249	company, or tax-option corporation that has added that amount to the
250	250	partnership[s, limited liability company[s, or tax-option corporation[s income under
251	251	s. 71.21 (4) or 71.34 (1k) (g).
252	252	SECTION 6. 71.28 (8t) of the statutes is created to read:
253	253	71.28 (8t) RAIL INFRASTRUCTURE MODERNIZATION CREDIT. (a) Definitions. In
254	254	this subsection:
255	255	1. XClaimantY means a person who files a claim under this subsection and
256	256	who is one of the following:
257	257	a. A railroad company located wholly or partly in this state that is classified by
258	258	the federal surface transportation board as a class II or class III railroad for the
259	259	taxable year to which the claim applies.
260	260	b. An owner or lessee of a rail siding, industrial spur, or industry track on or
261	261	adjacent to a railroad in this state during the taxable year to which the claim
262	262	applies.
263	263	2. XQualified new rail infrastructure expendituresY means expenditures for
264	264	rail infrastructure and improvements in this state placed in service after December
265	265	31, 2024, including expenditures for the acquisition of right-of-way; engineering;
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293	293	SECTION 6
294	294	construction of new track such as industrial leads, switches, spurs, and sidings;
295	295	rehabilitation of existing inactive track to reinstate operation; loading dock
296	296	improvements; and transloading structures involved with servicing customer
297	297	locations or expansions.
298	298	3. XQualified short line railroad maintenance expendituresY means gross
299	299	expenditures for railroad infrastructure rehabilitation or maintenance
300	300	improvements located in this state, including but not limited to rail, tie plates, joint
301	301	bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings,
302	302	signs, safety barriers, crossing signals and gates, and related track structures.
303	303	(b) Filing claims. For taxable years beginning after December 31, 2024, and
304	304	before January 1, 2035, and subject to the limitations provided in this subsection, a
305	305	claimant may claim as a credit against the tax imposed under s. 71.23, up to the
306	306	amount of those taxes, all of the following:
307	307	1. An amount equal to 50 percent of the qualified short line railroad
308	308	maintenance expenditures made by the claimant during the taxable year to which
309	309	the claim relates if the claimant is classified by the federal surface transportation
310	310	board as a class II or class III railroad for the taxable year.
311	311	2. An amount equal to 50 percent of the qualified new rail infrastructure
312	312	expenditures made by the claimant during the taxable year to which the claim
313	313	relates.
314	314	(c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified
315	315	short line railroad maintenance expenditures that are used to claim a tax credit
316	316	under federal law or that are funded by a federal or state grant.
317	317	2. The total amount of the credits under par. (b) 1. and ss. 71.07 (8t) (b) 1. and
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341	341	24 2025 - 2026 Legislature
342	342	ASSEMBLY BILL 219
343	343	- 8 - LRB-2618/1
344	344	KP:cdc
345	345	SECTION 6
346	346	71.47 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to
347	347	$5,000 multiplied by the number of miles of railroad track owned or leased by the
348	348	claimant in this state on December 31 of the taxable year to which the claim
349	349	applies.
350	350	3. The total amount of the credits under par. (b) 2. and ss. 71.07 (8t) (b) 2. and
351	351	71.47 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per
352	352	project application approved by the department.
353	353	4. No credit may be allowed under this subsection unless the claimant
354	354	submits an application to the department, at the time and in the manner
355	355	prescribed by the department, and the department approves the application. The
356	356	claimant shall submit a copy of the approved application with the claimant[s
357	357	return.
358	358	5. Partnerships, tax-option corporations, and limited liability companies may
359	359	not claim a credit under this subsection, but the eligibility for, and the amount of,
360	360	the credit are based on their expenditures made under par. (b). A partnership, tax-
361	361	option corporation, or limited liability company shall compute the amount of the
362	362	credit that each of its partners, shareholders, or members may claim and shall
363	363	provide that information to each of them. Partners of a partnership, shareholders
364	364	of tax-option corporations, and members of limited liability companies may claim
365	365	the credit in proportion to their ownership interest.
366	366	(d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
367	367	under sub. (4), applies to the credit under this subsection.
368	368	2. If a credit computed under this subsection is not entirely offset against
369	369	Wisconsin income or franchise taxes otherwise due, the unused balance may be
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394	394	ASSEMBLY BILL 219
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396	396	KP:cdc
397	397	SECTION 6
398	398	carried forward and credited against Wisconsin income or franchise taxes
399	399	otherwise due for the following 5 taxable years to the extent not offset by these
400	400	taxes otherwise due in all intervening years between the year in which the
401	401	expenditure was made and the year in which the carry-forward credit is claimed.
402	402	(e) Transfer. Any person may sell or otherwise transfer the credit under par.
403	403	(b), in whole or in part, to another person who is subject to the taxes imposed under
404	404	s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
405	405	submits with the notification a copy of the transfer documents, and the department
406	406	certifies ownership of the credit with each transfer. The transferor may file a claim
407	407	for more than one taxable year on a form prescribed by the department to compute
408	408	all years of the credit under par. (b) at the time of the transfer request. The
409	409	transferee may first use the credit to offset tax in the taxable year of the transferor
410	410	in which the transfer occurs, and may use the credit only to offset tax in taxable
411	411	years otherwise allowed to be claimed and carried forward by the original claimant.
412	412	SECTION 7. 71.30 (3) (cu) of the statutes is created to read:
413	413	71.30 (3) (cu) Rail infrastructure modernization credit under s. 71.28 (8t).
414	414	SECTION 8. 71.34 (1k) (g) of the statutes is amended to read:
415	415	71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
416	416	corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
417	417	(3wm), (3y), (4), (5), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), and (10) and passed
418	418	through to shareholders.
419	419	SECTION 9. 71.45 (2) (a) 10. of the statutes is amended to read:
420	420	71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
421	421	computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5g), (5i),
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449	449	SECTION 9
450	450	(5j), (5k), (5r), (5rm), (6n), (8t), and (10) and not passed through by a partnership,
451	451	limited liability company, or tax-option corporation that has added that amount to
452	452	the partnership[s, limited liability company[s, or tax-option corporation[s income
453	453	under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
454	454	(3), (3t), (4), (4m), and (5).
455	455	SECTION 10. 71.47 (8t) of the statutes is created to read:
456	456	71.47 (8t) RAIL INFRASTRUCTURE MODERNIZATION CREDIT. (a) Definitions. In
457	457	this subsection:
458	458	1. XClaimantY means a person who files a claim under this subsection and
459	459	who is one of the following:
460	460	a. A railroad company located wholly or partly in this state that is classified by
461	461	the federal surface transportation board as a class II or class III railroad for the
462	462	taxable year to which the claim applies.
463	463	b. An owner or lessee of a rail siding, industrial spur, or industry track on or
464	464	adjacent to a railroad in this state during the taxable year to which the claim
465	465	applies.
466	466	2. XQualified new rail infrastructure expendituresY means expenditures for
467	467	rail infrastructure and improvements in this state placed in service after December
468	468	31, 2024, including expenditures for the acquisition of right-of-way; engineering;
469	469	construction of new track such as industrial leads, switches, spurs, and sidings;
470	470	rehabilitation of existing inactive track to reinstate operation; loading dock
471	471	improvements; and transloading structures involved with servicing customer
472	472	locations or expansions.
473	473	3. XQualified short line railroad maintenance expendituresY means gross
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501	501	SECTION 10
502	502	expenditures for railroad infrastructure rehabilitation or maintenance
503	503	improvements located in this state, including but not limited to rail, tie plates, joint
504	504	bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings,
505	505	signs, safety barriers, crossing signals and gates, and related track structures.
506	506	(b) Filing claims. For taxable years beginning after December 31, 2024, and
507	507	before January 1, 2035, and subject to the limitations provided in this subsection, a
508	508	claimant may claim as a credit against the tax imposed under s. 71.43, up to the
509	509	amount of those taxes, all of the following:
510	510	1. An amount equal to 50 percent of the qualified short line railroad
511	511	maintenance expenditures made by the claimant during the taxable year to which
512	512	the claim relates if the claimant is classified by the federal surface transportation
513	513	board as a class II or class III railroad for the taxable year.
514	514	2. An amount equal to 50 percent of the qualified new rail infrastructure
515	515	expenditures made by the claimant during the taxable year to which the claim
516	516	relates.
517	517	(c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified
518	518	short line railroad maintenance expenditures that are used to claim a tax credit
519	519	under federal law or that are funded by a federal or state grant.
520	520	2. The total amount of the credits under par. (b) 1. and ss. 71.07 (8t) (b) 1. and
521	521	71.28 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to
522	522	$5,000 multiplied by the number of miles of railroad track owned or leased by the
523	523	claimant in this state on December 31 of the taxable year to which the claim
524	524	applies.
525	525	3. The total amount of the credits under par. (b) 2. and ss. 71.07 (8t) (b) 2. and
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549	549	24 2025 - 2026 Legislature
550	550	ASSEMBLY BILL 219
551	551	- 12 - LRB-2618/1
552	552	KP:cdc
553	553	SECTION 10
554	554	71.28 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per
555	555	project application approved by the department.
556	556	4. No credit may be allowed under this subsection unless the claimant
557	557	submits an application to the department, at the time and in the manner
558	558	prescribed by the department, and the department approves the application. The
559	559	claimant shall submit a copy of the approved application with the claimant[s
560	560	return.
561	561	5. Partnerships, tax-option corporations, and limited liability companies may
562	562	not claim a credit under this subsection, but the eligibility for, and the amount of,
563	563	the credit are based on their expenditures made under par. (b). A partnership, tax-
564	564	option corporation, or limited liability company shall compute the amount of the
565	565	credit that each of its partners, shareholders, or members may claim and shall
566	566	provide that information to each of them. Partners of a partnership, shareholders
567	567	of tax-option corporations, and members of limited liability companies may claim
568	568	the credit in proportion to their ownership interest.
569	569	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
570	570	credit under s. 71.28 (4), applies to the credit under this subsection.
571	571	2. If a credit computed under this subsection is not entirely offset against
572	572	Wisconsin income or franchise taxes otherwise due, the unused balance may be
573	573	carried forward and credited against Wisconsin income or franchise taxes
574	574	otherwise due for the following 5 taxable years to the extent not offset by these
575	575	taxes otherwise due in all intervening years between the year in which the
576	576	expenditure was made and the year in which the carry-forward credit is claimed.
577	577	(e) Transfer. Any person may sell or otherwise transfer the credit under par.
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601	601	24 2025 - 2026 Legislature
602	602	ASSEMBLY BILL 219
603	603	- 13 - LRB-2618/1
604	604	KP:cdc
605	605	SECTION 10
606	606	(b), in whole or in part, to another person who is subject to the taxes imposed under
607	607	s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
608	608	submits with the notification a copy of the transfer documents, and the department
609	609	certifies ownership of the credit with each transfer. The transferor may file a claim
610	610	for more than one taxable year on a form prescribed by the department to compute
611	611	all years of the credit under par. (b) at the time of the transfer request. The
612	612	transferee may first use the credit to offset tax in the taxable year of the transferor
613	613	in which the transfer occurs, and may use the credit only to offset tax in taxable
614	614	years otherwise allowed to be claimed and carried forward by the original claimant.
615	615	SECTION 11. 71.49 (1) (cu) of the statutes is created to read:
616	616	71.49 (1) (cu) Rail infrastructure modernization credit under s. 71.47 (8t).
617	617	SECTION 12. 73.03 (78) of the statutes is created to read:
618	618	73.03 (78) (a) To implement a program to approve applications for purposes of
619	619	ss. 71.07 (8t), 71.28 (8t), and 71.47 (8t). Application shall be made to the
620	620	department for each taxable year for which a credit is desired.
621	621	(b) 1. The department shall process applications under this subsection in the
622	622	order of receipt, and the department shall approve applications under this
623	623	subsection on a first-come, first-served basis.
624	624	2. The department may approve up to $10,000,000 in total credits under ss.
625	625	71.07 (8t) (b) 2., 71.28 (8t) (b) 2., and 71.47 (8t) (b) 2. for each taxable year.
626	626	(END)
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