H.R. 516 — To amend the Internal Revenue Code of 1986 to modify the railroad track maintenance credit.

This section modifies the railroad track maintenance tax credit by (1) increasing the per-mile limitation on qualified railroad track maintenance expenditures to $6,100 (from $3,500), (2) adding an inflation adjustment to the $6,100 amount for taxable years beginning after 2025 (rounded to the nearest $100 and based on the cost-of-living adjustment under IRC §1(f)(3) using calendar year 2024 as the base year), and (3) revising the reference date for eligible railroad track (i.e., track owned or leased by the taxpayer) to January 1, 2024 (from January 1, 2015). The changes apply to expenditures paid or incurred in taxable years beginning after December 31, 2024. (The credit equals 50% of such expenditures for eligible Class II and Class III railroads.)