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Freight RAILCAR Act of 2025

H.R. 1200 Rep. Darin LaHood (R-IL-16) In committee
Bill text PDF
  1. Introduced Feb 11
  2. Committee Feb 11
  3. Passed House Next
  4. Passed Senate Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, Feb 11, 2025Next: House vote
623d ago Feb 11, 2025: Referred to the House Committee on Ways and Means.
Final votes
No roll callsNo recorded vote on this bill yet
Lobbying
3companies, 24 filings
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Member trades
0trades in the last 90 days
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Companies lobbying on this bill

3 companies
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Industrials 2Mining & Materials 1
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Summary

This bill creates a temporary tax credit to encourage businesses to replace or modernize old freight railcars with newer, more efficient ones. It adds a new section to the Internal Revenue Code and requires a report on the credit's use.

Sec. 2, Freight railcar modernization credit: This section establishes a tax credit equal to 10% of a taxpayer's expenses for modernizing their freight railcar fleet. The credit is limited to 1,000 railcars per taxpayer per year. Eligible expenses include the cost of new replacement railcars that replace two scrapped older railcars, and costs to modernize existing railcars to significantly improve capacity (by at least 8%), fuel efficiency (by at least 8%), or performance (meeting specific safety standards). The railcars must be built in a facility not owned by an entity ineligible for certain federal contracts. The credit cannot be claimed for expenses already deducted or credited elsewhere, and the railcar's tax basis is reduced by the credit amount. Special rules address sale-leaseback and syndication transactions. Entities owned or controlled by state-owned enterprises ineligible for certain federal contracts cannot claim the credit. The credit expires three years after the bill's enactment.

Sec. 3, Report on the freight railcar modernization credit: Within three years of the bill's enactment, the Treasury Secretary must report to Congress on the credit's activity, including how many times it was claimed, how many railcars were scrapped, and how many new railcars were contracted for or built as a result.

Summary of the bill text as introduced in House (Feb 11, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.