WA SB5063

Tax credits of 50% for qualified expenditures on short line railroad maintenance, new rail development, and railroad modernization/rehabilitation, with a maximum of $500,000 per eligible taxpayer annually and an $8,000,000 statewide cap per calendar year

Sales and use tax exemptions on track maintenance materials (rail, ties, switches, ballast, bridges, crossing signals, etc.) for class II and III railroads, port/city/county-owned railroads, and owners of rail sidings and industrial spurs

Tax credits for companies that donate recycled railroad materials to eligible short line railroads, equal to the fair market value of donated materials

Eligible taxpayers include class II and III railroads, railroads owned by ports, cities, or counties, and owners/lessees of rail sidings and industrial spurs—excluding class I railroads and their subsidiaries

Credits can be carried forward for five years and transferred to other taxpayers; the ability to earn credits expires January 1, 2037, with final claims allowed through January 1, 2043