Committee adopts amendment and advances reauthorization of Railroad Modernization tax credit to 2032

Representative Alan Baker explained that HB190 would reauthorize the Railroad Modernization Act of 2019 and described an amendment that removes the previously proposed per-mile increase and instead reauthorizes the existing credit through 2032. "It just takes out the increases that were proposed and then just reauthorizes the bill so the bill would extend to 2032," Baker said.

Members pressed staff on whether the program cap is being reached; Baker confirmed the cap has been hit in recent years and said the program supports maintenance and reconstruction of short-line rails that serve ports and regional industries. The sponsor and chairman said they were sensitive to the cumulative effect of tax-credit bills on the Education Trust Fund and therefore proposed reauthorization without the rate increase.

The committee adopted the amendment and then approved the bill by voice vote. Representative Crow asked whether the program is hitting its cap yearly; Baker replied it has been "highly successful." The committee did not record a roll-call tally in the transcript; the measure was reported favorably.

The committee discussion focused on reauthorization and fiscal prudence rather than increasing the per-mile credit.