ID H0375

Creates a nonrefundable income tax credit equal to 50% of qualified railroad expenditures for eligible short line railroad companies, capped at $3,500 multiplied by the number of miles of track owned or leased in Idaho.

Defines eligible taxpayers as Class II or Class III short line railroad carriers operating partly or wholly in Idaho, and allows transfer of unused credits to eligible customers or vendors within 5 years.

Covers qualified expenditures for reconstruction, replacement, maintenance, or construction of railroad infrastructure including track, roadbed, bridges, sidings, switches, and spurs incurred between January 1, 2019 and December 31, 2023.

Permits unused tax credits to be carried forward for up to 5 years following the year the credit was earned, and requires joint filing of written transfer agreements with the Idaho State Tax Commission.

Effective January 1, 2019, with a sunset date of January 1, 2024, after which no new credits may be claimed for expenditures incurred on or after that date.