WA HB1058

Tax credits of 50% for short line railroad maintenance, new rail development, and modernization/rehabilitation expenditures for Class II and Class III railroads, port/city/county-owned railroads, and owners of rail sidings adjacent to these railroads

Maximum credit of $500,000 per eligible taxpayer annually, with a statewide cap of $8,000,000 per calendar year; maintenance credits limited to $2,500 per mile of track owned or leased

Sales and use tax exemptions for materials required for track maintenance purchased by Class II/III railroads, public railroads, and qualifying rail siding owners

Tax credit for companies that donate recycled railroad materials (rail, ties, switches, ballast, etc.) to eligible short line railroads, equal to fair market value of donated materials

Credits may be carried forward for five years and transferred to other taxpayers; Class I railroads and their subsidiaries are excluded from all incentives; ability to earn credits expires January 1, 2037