Senate Bill 213 proposes the establishment of a tax credit aimed at modernizing rail infrastructure in Wisconsin. The bill allows class II and class III railroads, as classified by the U.S. Surface Transportation Board, to claim a credit for 50% of their qualified short line railroad maintenance expenditures and qualified new rail infrastructure expenditures. The credit for maintenance is capped at $5,000 per mile of track owned or leased, while the credit for new infrastructure is limited to $2,000,000 per project. Claimants must apply to the Department of Revenue (DOR) for approval, with a total cap of $10,000,000 in credits available each tax year, allocated on a first-come, first-served basis.

The bill also includes several amendments and new sections to existing statutes, specifically amending sections 71.05, 71.21, 71.26, and 71.10, while creating new sections 71.07, 71.28, and 73.03. Notably, it introduces definitions for "qualified new rail infrastructure expenditures" and "qualified short line railroad maintenance expenditures," detailing the types of expenses that qualify for the credit. Additionally, it specifies that partnerships, tax-option corporations, and limited liability companies cannot claim the credit directly but can compute the credit based on their expenditures for distribution to their partners or members.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26