The bill seeks to improve freight railroad infrastructure in Washington by offering tax incentives to eligible taxpayers engaged in railroad maintenance, development, and modernization. It introduces new provisions in the Revised Code of Washington (RCW), particularly in chapter 82.04, which allows taxpayers to claim a tax credit equal to 50% of their qualified expenditures, capped at $1,000,000 per taxpayer annually, with a total annual limit of $15,000,000 in credits. The bill also facilitates the transfer of these credits among taxpayers and defines various terms related to railroad classifications and expenditures. Additionally, it exempts certain sales and uses of materials for track maintenance from state taxes for class II and class III railroads and local government-owned rail facilities.

Furthermore, the legislation establishes a new credit for companies that recycle railroad materials, equating to the fair market value of donated materials used for track maintenance, expansion, or modernization. It mandates electronic filing for credit applications and returns, sets expiration dates for earning credits, and includes a performance statement to assess the tax preferences' effectiveness in promoting economic development and environmental sustainability in freight transportation. If funding is not secured by June 30, 2024, the act will become null and void.