IL HB4703

Creates the Short Line Railroad Modernization Act providing a 50% income tax credit for qualified railroad expenditures on maintenance, reconstruction, or replacement of existing Class II or Class III railroad infrastructure in Illinois

Caps individual credits for qualified railroad expenditures at $5,000 per mile of track owned or leased, with an annual statewide limit of $9,000,000

Provides a 50% credit for qualified new rail infrastructure expenditures (industrial leads, switches, spurs, sidings, transloading structures), capped at $2,000,000 per rail-served customer location with an annual statewide limit of $10,000,000

Applies to taxable years beginning after January 1, 2027 and before January 1, 2037, with unused credits carrying forward for up to 5 years and credits being transferable by written agreement

Prioritizes new infrastructure projects that serve industrial parks, ports, value-added agriculture, advanced manufacturing, sustainable businesses, or demonstrate significant job creation and private capital investment