SB 291 - The Railroad Modernization Act of 2019

• Creates a state income tax credit equal to 50 percent of qualified railroad reconstruction or replacement expenditures for Class II or Class III railroads classified by the U.S. Surface Transportation Board.

• Tax credit is capped at $3,500 multiplied by the number of miles of railroad track owned or leased within the state by the eligible taxpayer.

• Allows eligible taxpayers to transfer all or part of the credit to other taxpayers via written transfer agreement, with a $1,000 transfer fee, but transferred credits cannot be transferred again.

• Permits unused credits to be carried forward for up to five tax years following the year of qualification.

• Tax credit is effective for tax years 2019 through 2023, unless extended by the Legislature, and the Department of Revenue must report annually to the Legislature on total credits claimed and amounts.