IL HB3419

Creates a $1 per gallon income tax credit for taxpayers who manufacture renewable diesel in Illinois specifically for use by rail carriers (Class I, II, or III railroads)

Takes effect for taxable years beginning on or after January 1, 2027

Defines renewable diesel as hydrocarbon fuel derived from biomass that meets ASTM standards D975 or D396

Requires taxpayers to maintain records documenting gallons manufactured and verification that the fuel meets renewable diesel standards

Allows unused credits to be carried forward for up to 10 taxable years, with credits applied to the earliest year first