Preserving and maintaining the state’s railways
The Rail Infrastructure Maintenance Tax Credit was created in 2026 to incentivize rehabilitating or maintaining existing rail infrastructure.
Eligibility criteria
To qualify for this tax credit, Class II or III railroad owners or carriers must be certified by the Wisconsin Economic Development Corporation (WEDC).
These improvement costs are eligible to be certified as qualified short line maintenance expenditures:
- Rail, tie plates, joint bars, fasteners, ballast, roadbed, subgrade, track
- Switches, crossing signals and gates, safety equipment
- Industrial leads and sidings
- Third-party labor costs for railroad infrastructure rehabilitation or maintenance improvements
- Wages for employees doing railroad infrastructure rehabilitation or maintenance work
The credits may be verified for an amount up to 50% of qualified expenses, subject to other applicable criteria.
How it works
WEDC will enter into contracts with applicants that are certified to claim these tax credits. Certified entities may claim the credits for qualified new rail expenditures or maintenance expenses for taxable years beginning after Dec. 31, 2025, and before Jan. 1, 2031. Applicants cannot be certified to claim both the Rail Infrastructure Maintenance Tax Credit and the Rail Infrastructure Modernization Tax Credit for the same expenditure, nor for any expenditure outside of the eligible tax years. The credits are transferable with authorization from the Wisconsin Department of Revenue.
