California SB1287 proposes tax credits for shortline railroad expenditures and new rail infrastructure.
California SB1287, the Shortline Railroad Modernization Act of 2026, introduces tax credits for qualified taxpayers who incur expenditures on shortline railroad infrastructure and new rail infrastructure. The bill aims to improve safety, reliability, and efficiency of shortline and regional rail services, and to support job retention and creation in rail-dependent industries. Qualified taxpayers include companies operating Class II or III railroads in California and owners or lessees of rail sidings, industrial spurs, or industry tracks.
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