S. 1532: To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

This bill proposes changes to the Internal Revenue Code of 1986 specifically related to the railroad track maintenance credit. Here is a breakdown of the main components of the bill:

Modification of Railroad Track Maintenance Credit

Increase in Credit Amount

The bill seeks to increase the maintenance credit available for railroad track maintenance. Specifically:

• The current credit amount of $3,500 would be increased to $6,100.

Inflation Adjustment

The bill includes a provision for adjusting the credit amount for inflation. This means that:

• After 2025, the credit amount of $6,100 would be subject to annual adjustments based on the cost of living.
• The adjustments will ensure that the credit grows in line with inflation, rounded to the nearest multiple of $100.

Qualified Railroad Track Maintenance Expenditures

The bill changes the date related to the qualified expenditures associated with the maintenance credit:

• The current date reference of January 1, 2015, for eligible expenditures will be updated to January 1, 2024.

Effective Date

The changes proposed in this bill would apply to expenses incurred in taxable years beginning after December 31, 2024.

Relevant Companies

• UNP (Union Pacific Corporation): As a major railway operator, Union Pacific would likely benefit from the increased maintenance credit, aiding in funding their infrastructure improvements.
• CSX (CSX Corporation): Similar to Union Pacific, CSX could see advantages from an increased credit, potentially improving their financial position for track maintenance expenditures.