The proposed bill introduces the West Virginia Short Line Railroad Modernization Act, which aims to provide tax credits to eligible short line railroad companies and owners or lessees of rail sidings in West Virginia. The bill defines key terms, including "eligible taxpayer," "qualified new rail infrastructure expenditures," and "qualified short line railroad maintenance expenditures." It establishes a nonrefundable tax credit of 50% for both qualified maintenance and new infrastructure expenditures, with specific limitations on the total amount of credits that can be claimed. For maintenance expenditures, the credit is capped at $5,000 per mile of track, while new infrastructure projects are limited to $2 million per project and a total of $5 million per taxable year.

Additionally, the bill outlines the requirements for claiming the tax credits, including the submission of a certificate of eligibility and an application to the Tax Commissioner. It allows for the carryover and transfer of unused credits, and mandates a review and accountability report every two years to assess the effectiveness of the program. The provisions of the act will expire on July 1, 2031, unless reenacted by the Legislature, ensuring that no credits can be claimed for expenditures incurred after this date.

Statutes affected:
Introduced Version: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8