Wisconsin 2025-2026 Regular Session

Wisconsin Senate Bill SB213 Compare Versions

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

Old	New	Differences
1	1	2025 - 2026 LEGISLATURE
2	2	LRB-1305/1
3	3	KP:cdc
4	4	2025 SENATE BILL 213
5	5	April 16, 2025 - Introduced by Senators QUINN, FEYEN and TOMCZYK, cosponsored
6	6	by Representatives NOVAK, TRANEL, ARMSTRONG, DONOVAN, FRANKLIN,
7	7	GUNDRUM, MELOTIK, MURSAU, PRONSCHINSKE and SWEARINGEN. Referred to
8	8	Committee on Agriculture and Revenue.
9	9	AN ACT to amend 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g)
10	10	and 71.45 (2) (a) 10.; to create 71.07 (8t), 71.10 (4) (cu), 71.28 (8t), 71.30 (3)
11	11	(cu), 71.47 (8t), 71.49 (1) (cu) and 73.03 (78) of the statutes; relating to: a tax
12	12	credit for rail infrastructure modernization.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill creates an income and franchise tax credit for railroads that make
15	15	rail infrastructure and railroad maintenance expenditures. Under the bill, a
16	16	claimant that is classified by the U.S. Surface Transportation Board as a class II or
17	17	class III railroad may claim a rail infrastructure modernization credit that is equal
18	18	to the sum of the following amounts:
19	19	1. Fifty percent of the qualified short line railroad maintenance expenditures
20	20	made by the railroad. This portion of the credit is limited to an amount equal to
21	21	$5,000 multiplied by the number of miles of railroad track owned or leased by the
22	22	railroad. The bill defines Xqualified short line railroad maintenance expendituresY
23	23	as gross expenditures for railroad infrastructure rehabilitation or maintenance
24	24	improvements located in this state.
25	25	2. Fifty percent of the railroad[s qualified new rail infrastructure
26	26	expenditures. This portion of the credit is limited to $2,000,000 per project. The
27	27	bill defines Xqualified new rail infrastructure expendituresY as expenditures for rail
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31	31	4 2025 - 2026 Legislature
32	32	SENATE BILL 213
33	33	- 2 - LRB-1305/1
34	34	KP:cdc
35	35	SECTION 1
36	36	infrastructure and improvements in this state placed in service after December 31,
37	37	2024.
38	38	A claimant that owns or leases a rail siding, industrial spur, or industry track
39	39	may claim the portion of the credit described above for the claimant[s qualified new
40	40	rail infrastructure expenditures.
41	41	Before claiming a credit under the bill, a claimant must first apply to and
42	42	receive approval from the Department of Revenue to claim the credit. DOR may
43	43	approve up to $10,000,000 in total credits for qualified new rail infrastructure
44	44	expenditures for each tax year, and DOR must approve applications for credits on a
45	45	first-come, first-served basis.
46	46	For further information see the state fiscal estimate, which will be printed as
47	47	an appendix to this bill.
48	48	The people of the state of Wisconsin, represented in senate and assembly, do
49	49	enact as follows:
50	50	SECTION 1. 71.05 (6) (a) 15. of the statutes is amended to read:
51	51	71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
52	52	(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5i), (5j), (5k),
53	53	(5r), (5rm), (6n), (8t), and (10) and not passed through by a partnership, limited
54	54	liability company, or tax-option corporation that has added that amount to the
55	55	partnership[s, company[s, or tax-option corporation[s income under s. 71.21 (4) or
56	56	71.34 (1k) (g).
57	57	SECTION 2. 71.07 (8t) of the statutes is created to read:
58	58	71.07 (8t) RAIL INFRASTRUCTURE MODERNIZATION CREDIT. (a) Definitions. In
59	59	this subsection:
60	60	1. XClaimantY means a person who files a claim under this subsection and
61	61	who is one of the following:
62	62	a. A railroad company located wholly or partly in this state that is classified by
63	63	the federal surface transportation board as a class II or class III railroad for the
64	64	taxable year to which the claim applies.
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80	80	SENATE BILL 213
81	81	- 3 - LRB-1305/1
82	82	KP:cdc
83	83	SECTION 2
84	84	b. An owner or lessee of a rail siding, industrial spur, or industry track on or
85	85	adjacent to a railroad in this state during the taxable year to which the claim
86	86	applies.
87	87	2. XQualified new rail infrastructure expendituresY means expenditures for
88	88	rail infrastructure and improvements in this state placed in service after December
89	89	31, 2024, including expenditures for the acquisition of right-of-way; engineering;
90	90	construction of new track such as industrial leads, switches, spurs, and sidings;
91	91	rehabilitation of existing inactive track to reinstate operation; loading dock
92	92	improvements; and transloading structures involved with servicing customer
93	93	locations or expansions.
94	94	3. XQualified short line railroad maintenance expendituresY means gross
95	95	expenditures for railroad infrastructure rehabilitation or maintenance
96	96	improvements located in this state, including but not limited to rail, tie plates, joint
97	97	bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings,
98	98	signs, safety barriers, crossing signals and gates, and related track structures.
99	99	(b) Filing claims. For taxable years beginning after December 31, 2024, and
100	100	before January 1, 2035, and subject to the limitations provided in this subsection, a
101	101	claimant may claim as a credit against the tax imposed under s. 71.02, up to the
102	102	amount of those taxes, all of the following:
103	103	1. An amount equal to 50 percent of the qualified short line railroad
104	104	maintenance expenditures made by the claimant during the taxable year to which
105	105	the claim relates if the claimant is classified by the federal surface transportation
106	106	board as a class II or class III railroad for the taxable year.
107	107	2. An amount equal to 50 percent of the qualified new rail infrastructure
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131	131	24 2025 - 2026 Legislature
132	132	SENATE BILL 213
133	133	- 4 - LRB-1305/1
134	134	KP:cdc
135	135	SECTION 2
136	136	expenditures made by the claimant during the taxable year to which the claim
137	137	relates.
138	138	(c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified
139	139	short line railroad maintenance expenditures that are used to claim a tax credit
140	140	under federal law or that are funded by a federal or state grant.
141	141	2. The total amount of the credits under par. (b) 1. and ss. 71.28 (8t) (b) 1. and
142	142	71.47 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to
143	143	$5,000 multiplied by the number of miles of railroad track owned or leased by the
144	144	claimant in this state on December 31 of the taxable year to which the claim
145	145	applies.
146	146	3. The total amount of the credits under par. (b) 2. and ss. 71.28 (8t) (b) 2. and
147	147	71.47 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per
148	148	project application approved by the department.
149	149	4. No credit may be allowed under this subsection unless the claimant
150	150	submits an application to the department, at the time and in the manner
151	151	prescribed by the department, and the department approves the application. The
152	152	claimant shall submit a copy of the approved application with the claimant[s
153	153	return.
154	154	5. Partnerships, tax-option corporations, and limited liability companies may
155	155	not claim a credit under this subsection, but the eligibility for, and the amount of,
156	156	the credit are based on their expenditures made under par. (b). A partnership, tax-
157	157	option corporation, or limited liability company shall compute the amount of the
158	158	credit that each of its partners, shareholders, or members may claim and shall
159	159	provide that information to each of them. Partners of a partnership, shareholders
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183	183	24 2025 - 2026 Legislature
184	184	SENATE BILL 213
185	185	- 5 - LRB-1305/1
186	186	KP:cdc
187	187	SECTION 2
188	188	of tax-option corporations, and members of limited liability companies may claim
189	189	the credit in proportion to their ownership interest.
190	190	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
191	191	credit under s. 71.28 (4), applies to the credit under this subsection.
192	192	2. If a credit computed under this subsection is not entirely offset against
193	193	Wisconsin income or franchise taxes otherwise due, the unused balance may be
194	194	carried forward and credited against Wisconsin income or franchise taxes
195	195	otherwise due for the following 5 taxable years to the extent not offset by these
196	196	taxes otherwise due in all intervening years between the year in which the
197	197	expenditure was made and the year in which the carry-forward credit is claimed.
198	198	(e) Transfer. Any person may sell or otherwise transfer the credit under par.
199	199	(b), in whole or in part, to another person who is subject to the taxes imposed under
200	200	s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
201	201	submits with the notification a copy of the transfer documents, and the department
202	202	certifies ownership of the credit with each transfer. The transferor may file a claim
203	203	for more than one taxable year on a form prescribed by the department to compute
204	204	all years of the credit under par. (b) at the time of the transfer request. The
205	205	transferee may first use the credit to offset tax in the taxable year of the transferor
206	206	in which the transfer occurs, and may use the credit only to offset tax in taxable
207	207	years otherwise allowed to be claimed and carried forward by the original claimant.
208	208	SECTION 3. 71.10 (4) (cu) of the statutes is created to read:
209	209	71.10 (4) (cu) Rail infrastructure modernization credit under s. 71.07 (8t).
210	210	SECTION 4. 71.21 (4) (a) of the statutes is amended to read:
211	211	71.21 (4) (a) The amount of the credits computed by a partnership under s.
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235	235	24 2025 - 2026 Legislature
236	236	SENATE BILL 213
237	237	- 6 - LRB-1305/1
238	238	KP:cdc
239	239	SECTION 4
240	240	71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
241	241	(5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), and (10) and passed through to partners
242	242	shall be added to the partnership[s income.
243	243	SECTION 5. 71.26 (2) (a) 4. of the statutes is amended to read:
244	244	71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
245	245	(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5g), (5i), (5j), (5k), (5r),
246	246	(5rm), (6n), (8t), and (10) and not passed through by a partnership, limited liability
247	247	company, or tax-option corporation that has added that amount to the
248	248	partnership[s, limited liability company[s, or tax-option corporation[s income under
249	249	s. 71.21 (4) or 71.34 (1k) (g).
250	250	SECTION 6. 71.28 (8t) of the statutes is created to read:
251	251	71.28 (8t) RAIL INFRASTRUCTURE MODERNIZATION CREDIT. (a) Definitions. In
252	252	this subsection:
253	253	1. XClaimantY means a person who files a claim under this subsection and
254	254	who is one of the following:
255	255	a. A railroad company located wholly or partly in this state that is classified by
256	256	the federal surface transportation board as a class II or class III railroad for the
257	257	taxable year to which the claim applies.
258	258	b. An owner or lessee of a rail siding, industrial spur, or industry track on or
259	259	adjacent to a railroad in this state during the taxable year to which the claim
260	260	applies.
261	261	2. XQualified new rail infrastructure expendituresY means expenditures for
262	262	rail infrastructure and improvements in this state placed in service after December
263	263	31, 2024, including expenditures for the acquisition of right-of-way; engineering;
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287	287	24 2025 - 2026 Legislature
288	288	SENATE BILL 213
289	289	- 7 - LRB-1305/1
290	290	KP:cdc
291	291	SECTION 6
292	292	construction of new track such as industrial leads, switches, spurs, and sidings;
293	293	rehabilitation of existing inactive track to reinstate operation; loading dock
294	294	improvements; and transloading structures involved with servicing customer
295	295	locations or expansions.
296	296	3. XQualified short line railroad maintenance expendituresY means gross
297	297	expenditures for railroad infrastructure rehabilitation or maintenance
298	298	improvements located in this state, including but not limited to rail, tie plates, joint
299	299	bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings,
300	300	signs, safety barriers, crossing signals and gates, and related track structures.
301	301	(b) Filing claims. For taxable years beginning after December 31, 2024, and
302	302	before January 1, 2035, and subject to the limitations provided in this subsection, a
303	303	claimant may claim as a credit against the tax imposed under s. 71.23, up to the
304	304	amount of those taxes, all of the following:
305	305	1. An amount equal to 50 percent of the qualified short line railroad
306	306	maintenance expenditures made by the claimant during the taxable year to which
307	307	the claim relates if the claimant is classified by the federal surface transportation
308	308	board as a class II or class III railroad for the taxable year.
309	309	2. An amount equal to 50 percent of the qualified new rail infrastructure
310	310	expenditures made by the claimant during the taxable year to which the claim
311	311	relates.
312	312	(c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified
313	313	short line railroad maintenance expenditures that are used to claim a tax credit
314	314	under federal law or that are funded by a federal or state grant.
315	315	2. The total amount of the credits under par. (b) 1. and ss. 71.07 (8t) (b) 1. and
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339	339	24 2025 - 2026 Legislature
340	340	SENATE BILL 213
341	341	- 8 - LRB-1305/1
342	342	KP:cdc
343	343	SECTION 6
344	344	71.47 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to
345	345	$5,000 multiplied by the number of miles of railroad track owned or leased by the
346	346	claimant in this state on December 31 of the taxable year to which the claim
347	347	applies.
348	348	3. The total amount of the credits under par. (b) 2. and ss. 71.07 (8t) (b) 2. and
349	349	71.47 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per
350	350	project application approved by the department.
351	351	4. No credit may be allowed under this subsection unless the claimant
352	352	submits an application to the department, at the time and in the manner
353	353	prescribed by the department, and the department approves the application. The
354	354	claimant shall submit a copy of the approved application with the claimant[s
355	355	return.
356	356	5. Partnerships, tax-option corporations, and limited liability companies may
357	357	not claim a credit under this subsection, but the eligibility for, and the amount of,
358	358	the credit are based on their expenditures made under par. (b). A partnership, tax-
359	359	option corporation, or limited liability company shall compute the amount of the
360	360	credit that each of its partners, shareholders, or members may claim and shall
361	361	provide that information to each of them. Partners of a partnership, shareholders
362	362	of tax-option corporations, and members of limited liability companies may claim
363	363	the credit in proportion to their ownership interest.
364	364	(d) Administration. 1. Subsection (4) (e), (g), and (h), as it applies to the credit
365	365	under sub. (4), applies to the credit under this subsection.
366	366	2. If a credit computed under this subsection is not entirely offset against
367	367	Wisconsin income or franchise taxes otherwise due, the unused balance may be
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391	391	24 2025 - 2026 Legislature
392	392	SENATE BILL 213
393	393	- 9 - LRB-1305/1
394	394	KP:cdc
395	395	SECTION 6
396	396	carried forward and credited against Wisconsin income or franchise taxes
397	397	otherwise due for the following 5 taxable years to the extent not offset by these
398	398	taxes otherwise due in all intervening years between the year in which the
399	399	expenditure was made and the year in which the carry-forward credit is claimed.
400	400	(e) Transfer. Any person may sell or otherwise transfer the credit under par.
401	401	(b), in whole or in part, to another person who is subject to the taxes imposed under
402	402	s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
403	403	submits with the notification a copy of the transfer documents, and the department
404	404	certifies ownership of the credit with each transfer. The transferor may file a claim
405	405	for more than one taxable year on a form prescribed by the department to compute
406	406	all years of the credit under par. (b) at the time of the transfer request. The
407	407	transferee may first use the credit to offset tax in the taxable year of the transferor
408	408	in which the transfer occurs, and may use the credit only to offset tax in taxable
409	409	years otherwise allowed to be claimed and carried forward by the original claimant.
410	410	SECTION 7. 71.30 (3) (cu) of the statutes is created to read:
411	411	71.30 (3) (cu) Rail infrastructure modernization credit under s. 71.28 (8t).
412	412	SECTION 8. 71.34 (1k) (g) of the statutes is amended to read:
413	413	71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
414	414	corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
415	415	(3wm), (3y), (4), (5), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), (8t), and (10) and passed
416	416	through to shareholders.
417	417	SECTION 9. 71.45 (2) (a) 10. of the statutes is amended to read:
418	418	71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
419	419	computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5g), (5i),
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443	443	24 2025 - 2026 Legislature
444	444	SENATE BILL 213
445	445	- 10 - LRB-1305/1
446	446	KP:cdc
447	447	SECTION 9
448	448	(5j), (5k), (5r), (5rm), (6n), (8t), and (10) and not passed through by a partnership,
449	449	limited liability company, or tax-option corporation that has added that amount to
450	450	the partnership[s, limited liability company[s, or tax-option corporation[s income
451	451	under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47
452	452	(3), (3t), (4), (4m), and (5).
453	453	SECTION 10. 71.47 (8t) of the statutes is created to read:
454	454	71.47 (8t) RAIL INFRASTRUCTURE MODERNIZATION CREDIT. (a) Definitions. In
455	455	this subsection:
456	456	1. XClaimantY means a person who files a claim under this subsection and
457	457	who is one of the following:
458	458	a. A railroad company located wholly or partly in this state that is classified by
459	459	the federal surface transportation board as a class II or class III railroad for the
460	460	taxable year to which the claim applies.
461	461	b. An owner or lessee of a rail siding, industrial spur, or industry track on or
462	462	adjacent to a railroad in this state during the taxable year to which the claim
463	463	applies.
464	464	2. XQualified new rail infrastructure expendituresY means expenditures for
465	465	rail infrastructure and improvements in this state placed in service after December
466	466	31, 2024, including expenditures for the acquisition of right-of-way; engineering;
467	467	construction of new track such as industrial leads, switches, spurs, and sidings;
468	468	rehabilitation of existing inactive track to reinstate operation; loading dock
469	469	improvements; and transloading structures involved with servicing customer
470	470	locations or expansions.
471	471	3. XQualified short line railroad maintenance expendituresY means gross
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495	495	24 2025 - 2026 Legislature
496	496	SENATE BILL 213
497	497	- 11 - LRB-1305/1
498	498	KP:cdc
499	499	SECTION 10
500	500	expenditures for railroad infrastructure rehabilitation or maintenance
501	501	improvements located in this state, including but not limited to rail, tie plates, joint
502	502	bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings,
503	503	signs, safety barriers, crossing signals and gates, and related track structures.
504	504	(b) Filing claims. For taxable years beginning after December 31, 2024, and
505	505	before January 1, 2035, and subject to the limitations provided in this subsection, a
506	506	claimant may claim as a credit against the tax imposed under s. 71.43, up to the
507	507	amount of those taxes, all of the following:
508	508	1. An amount equal to 50 percent of the qualified short line railroad
509	509	maintenance expenditures made by the claimant during the taxable year to which
510	510	the claim relates if the claimant is classified by the federal surface transportation
511	511	board as a class II or class III railroad for the taxable year.
512	512	2. An amount equal to 50 percent of the qualified new rail infrastructure
513	513	expenditures made by the claimant during the taxable year to which the claim
514	514	relates.
515	515	(c) Limitations. 1. No credit may be claimed under par. (b) 1. for any qualified
516	516	short line railroad maintenance expenditures that are used to claim a tax credit
517	517	under federal law or that are funded by a federal or state grant.
518	518	2. The total amount of the credits under par. (b) 1. and ss. 71.07 (8t) (b) 1. and
519	519	71.28 (8t) (b) 1. for a claimant for a taxable year may not exceed an amount equal to
520	520	$5,000 multiplied by the number of miles of railroad track owned or leased by the
521	521	claimant in this state on December 31 of the taxable year to which the claim
522	522	applies.
523	523	3. The total amount of the credits under par. (b) 2. and ss. 71.07 (8t) (b) 2. and
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547	547	24 2025 - 2026 Legislature
548	548	SENATE BILL 213
549	549	- 12 - LRB-1305/1
550	550	KP:cdc
551	551	SECTION 10
552	552	71.28 (8t) (b) 2. for a claimant for a taxable year may not exceed $2,000,000 per
553	553	project application approved by the department.
554	554	4. No credit may be allowed under this subsection unless the claimant
555	555	submits an application to the department, at the time and in the manner
556	556	prescribed by the department, and the department approves the application. The
557	557	claimant shall submit a copy of the approved application with the claimant[s
558	558	return.
559	559	5. Partnerships, tax-option corporations, and limited liability companies may
560	560	not claim a credit under this subsection, but the eligibility for, and the amount of,
561	561	the credit are based on their expenditures made under par. (b). A partnership, tax-
562	562	option corporation, or limited liability company shall compute the amount of the
563	563	credit that each of its partners, shareholders, or members may claim and shall
564	564	provide that information to each of them. Partners of a partnership, shareholders
565	565	of tax-option corporations, and members of limited liability companies may claim
566	566	the credit in proportion to their ownership interest.
567	567	(d) Administration. 1. Section 71.28 (4) (e), (g), and (h), as it applies to the
568	568	credit under s. 71.28 (4), applies to the credit under this subsection.
569	569	2. If a credit computed under this subsection is not entirely offset against
570	570	Wisconsin income or franchise taxes otherwise due, the unused balance may be
571	571	carried forward and credited against Wisconsin income or franchise taxes
572	572	otherwise due for the following 5 taxable years to the extent not offset by these
573	573	taxes otherwise due in all intervening years between the year in which the
574	574	expenditure was made and the year in which the carry-forward credit is claimed.
575	575	(e) Transfer. Any person may sell or otherwise transfer the credit under par.
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599	599	24 2025 - 2026 Legislature
600	600	SENATE BILL 213
601	601	- 13 - LRB-1305/1
602	602	KP:cdc
603	603	SECTION 10
604	604	(b), in whole or in part, to another person who is subject to the taxes imposed under
605	605	s. 71.02, 71.23, or 71.43, if the person notifies the department of the transfer, and
606	606	submits with the notification a copy of the transfer documents, and the department
607	607	certifies ownership of the credit with each transfer. The transferor may file a claim
608	608	for more than one taxable year on a form prescribed by the department to compute
609	609	all years of the credit under par. (b) at the time of the transfer request. The
610	610	transferee may first use the credit to offset tax in the taxable year of the transferor
611	611	in which the transfer occurs, and may use the credit only to offset tax in taxable
612	612	years otherwise allowed to be claimed and carried forward by the original claimant.
613	613	SECTION 11. 71.49 (1) (cu) of the statutes is created to read:
614	614	71.49 (1) (cu) Rail infrastructure modernization credit under s. 71.47 (8t).
615	615	SECTION 12. 73.03 (78) of the statutes is created to read:
616	616	73.03 (78) (a) To implement a program to approve applications for purposes of
617	617	ss. 71.07 (8t), 71.28 (8t), and 71.47 (8t). Application shall be made to the
618	618	department for each taxable year for which a credit is desired.
619	619	(b) 1. The department shall process applications under this subsection in the
620	620	order of receipt, and the department shall approve applications under this
621	621	subsection on a first-come, first-served basis.
622	622	2. The department may approve up to $10,000,000 in total credits under ss.
623	623	71.07 (8t) (b) 2., 71.28 (8t) (b) 2., and 71.47 (8t) (b) 2. for each taxable year.
624	624	(END)
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