Freight RAILCAR Act of 2025

This bill would create a federal business tax credit equal to 10 percent of what a company spends to buy new freight railcars that replace older ones or to upgrade existing railcars. A new railcar qualifies only if it replaces two of the company's older railcars that are scrapped, and upgrades must raise capacity by at least 8 percent or meet certain safety design standards. Each company could count no more than 1,000 railcars per tax year, and railcars must be built in facilities not tied to entities barred under a federal transit contracting rule. The credit would end three years after the law is enacted, and the Treasury would report to Congress on how often it was used.

Full text and official record on Congress.gov

Sponsors

• Jim Banks Republican sponsor
• 2 cosponsors