Assembly Bill 219 proposes the establishment of a tax credit for rail infrastructure modernization in Wisconsin. This credit is aimed at class II and class III railroads, allowing them to claim a credit equal to 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 adding provisions for the rail infrastructure modernization credit under sections 71.07, 71.10, 71.21, 71.26, and 71.28. Notably, it defines "qualified new rail infrastructure expenditures" and "qualified short line railroad maintenance expenditures," detailing what qualifies for the credit. Additionally, it stipulates 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