To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

If passed, regional and shortline railroads will receive up to $6,100 per mile annually (indexed to inflation) in tax credits, effectively doubling their financial incentive to maintain track. This reduces federal tax revenue by an estimated amount dependent on total miles claimed across the industry—likely tens of millions to low hundreds of millions annually as the credit matures, absent a CBO estimate. Historical precedent: Section 45G was enacted in 2004 and has operated with the $3,500 credit for two decades; research on its actual infrastructure impact is limited. Similar infrastructure tax credits (e.g., renewable energy credits, work opportunity credits) show mixed evidence on whether they increase qualifying activity beyond baseline levels or primarily reduce taxes on activity that would occur anyway. The 2024 effective date retroactively includes recent expenditures, accelerating credit claims. The inflation adjustment ensures the credit's real value does not erode, but also guarantees rising federal costs unless Congress revisits the provision.