SB186 Alabama 2019 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2019

Title

Railroads, Class II or Class III, corporate income tax credit for railroad reconstruction and replacements expenditures, transfer to taxpayers subject to corporate or indiv. income tax

Summary

This bill creates a transferable 50% income tax credit for Class II or Class III railroads' qualified reconstruction and replacement expenditures, usable by taxpayers with corporate or individual taxes, retroactive to 2019.

What This Bill Does

It provides a credit equal to 50% of eligible railroad reconstruction or replacement expenditures by eligible railroads. The credit is capped at $3,500 times the number of miles of railroad track owned or leased in Alabama. Eligible expenditures include maintenance, reconstruction, or replacement of railroad infrastructure such as track, roadbed, bridges, industrial leads, and track-related structures, including certain new constructions. Unused credits can be transferred to other taxpayers via a written agreement (with filing requirements), can be carried forward for five years, and the credit is retroactive to January 1, 2019.

Who It Affects

• Eligible Class II or Class III railroads: can receive a 50% credit for qualified expenditures, subject to the per-mile cap.
• Taxpayers subject to Alabama corporate or individual income tax: can receive transferred credits from railroads and apply them against their taxes; unused credits may be carried forward for five years.

Key Provisions

• Provides a 50% corporate income tax credit for eligible railroad reconstruction or replacement expenditures by Class II or Class III railroads.
• Credit is limited to $3,500 per mile of railroad track owned or leased in Alabama in the tax year.
• Eligible expenditures include maintenance, reconstruction, or replacement of railroad infrastructure (track, roadbed, bridges, industrial leads, track-related structures) and new construction of certain railroad facilities as of Jan 1, 2019.
• Credits can be transferred to eligible transferees (taxpayers subject to corporate or individual income tax) via written agreement; transfer must be filed with the Department of Revenue.
• Unused credits may be carried forward for five years after the year of qualification.
• Retroactive to January 1, 2019.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Railroads