ID H0061

Creates a nonrefundable income tax credit equal to 40% of qualified railroad expenditures, capped at $3,500 per mile of railroad track owned or leased in Idaho.

Applies only to Class II and Class III short line railroad companies operating in Idaho, with expenditures for reconstruction, replacement, maintenance, or construction of railroad infrastructure incurred between January 1, 2020 and December 31, 2024.

Allows unused credits to be carried forward for up to 5 years and permits one-time transfer of credits to eligible customers or vendors through a written agreement filed with the state tax commission.

Prohibits claiming the same qualified railroad expenditure for both this Idaho tax credit and the federal tax credit under 26 U.S.C. 45G.

Requires the state tax commission to promulgate rules for credit administration and submit annual reports to the legislature detailing approved credits and types of qualified expenditures.