The Railroad Modernization Act of 2019 (Act 2019-459) creates a refundable income tax credit beginning with tax years on or after December 31, 2019, for eligible taxpayers with qualified railroad reconstruction or replacement expenditures. Railroads that are classified as a Class II or Class III are eligible for the credit. Taxpayers must obtain per-certification from the Department of Commerce prior to claiming the credit on their income tax return. The Act imposes an annual credit limit of $3.7M, with an aggregate cap of $11.1 over the life of the credit. Further details on this is forthcoming.
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