The West Virginia Short Line Railroad Modernization Act establishes a new framework for providing tax credits to eligible short line railroad companies and owners or lessees of rail sidings in West Virginia. The Act defines key terms and outlines the criteria for qualifying expenditures, which include both maintenance and new infrastructure improvements. Eligible taxpayers can receive a nonrefundable tax credit equal to 50% of their qualified expenditures, with specific limitations on the total amount of credits available for maintenance and new infrastructure projects. The Act also details the application process for claiming these credits, including the requirement for a certificate of eligibility and the ability to transfer or carry forward unused credits.

Additionally, the Act mandates a review and accountability process, requiring the Tax Commissioner to report on the effectiveness of the tax credits every two years, starting in 2029. The provisions of the Act will take effect on January 1, 2027, and will sunset on July 1, 2031, unless reenacted by the Legislature. This legislation aims to support the modernization of short line railroads in West Virginia, thereby enhancing the state's transportation infrastructure and economic development.

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
Committee Substitute: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8
Enrolled Committee Substitute: 11-13NN-1, 11-13NN-2, 11-13NN-3, 11-13NN-4, 11-13NN-5, 11-13NN-6, 11-13NN-7, 11-13NN-8