Senate Bill 213 proposes the establishment of a tax credit for rail infrastructure modernization in Wisconsin, specifically targeting class II and class III railroads. The bill allows these railroads to claim a credit equal to 50% of their qualified short line railroad maintenance expenditures, capped at $5,000 per mile of track owned or leased, and 50% of their qualified new rail infrastructure expenditures, limited to $2,000,000 per project. The bill defines qualified expenditures and requires claimants to apply for and receive approval from the Department of Revenue (DOR) before claiming the credit. DOR will approve up to $10,000,000 in total credits for qualified new rail infrastructure expenditures each tax year on a first-come, first-served basis.

Additionally, the bill includes several amendments and new sections to existing statutes, such as the creation of new subsections under 71.07 and 71.28, which outline the definitions and limitations of the tax credit. Notably, partnerships, tax-option corporations, and limited liability companies are excluded from directly claiming the credit, although their expenditures can contribute to the credit calculations for their partners or members. The bill aims to incentivize investment in rail infrastructure and maintenance, thereby enhancing the efficiency and safety of rail transport in the state.

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