,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hjhb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,augu/ #ba1 #bjbj,mr4 
,s*neid] 7= himself1 ,mr4 ,la,hood1 ,mr4
 ,lip9ski1 ,mr4 ,craw=d1 ,mr4 ,blum5au]1
 & ,mr4 ,f]guson7 introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to       
provide a tax cr$it to enc\rage !       
replacem5t or mod]nization ( ineffici5t1
 outdat$ freight railc>s1 & = o!r       
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,freight ,rail ,assi/ance &
 ,inve/m5t to ,laun* ,coronavirus-era   
,activity & ,recov]y ,act ( #bjbj or !  
,freight ,,railc> ,act ( #bjbj4  #b4    
,qualifi$ freight railc> cr$it  7a7 ,9  
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #de,u4 ,qualifi$   
freight railc> cr$it  7a7 ,g5]al rule ,=
 purposes ( section #ch1 ! qualifi$     
freight railc> cr$it det]m9$ "u ?is     

section = ! taxable ye> is an am\nt     
equal to #ej p]c5t ( ! sum (-- 7#a7 !   
qualify+ replacem5t or mod]nization     
am\nt1  7#b7 ! qualify+ scrap am\nt1 &  
7#c7 ! qualify+ railc> facility &       
te*nology mod]nization am\nt4  7b7      
,def9itions ,9 ?is section-- 7#a7       
,qualify+ replacem5t or mod]nization    
am\nt ,! t]m qualify+ replacem5t or     
mod]nization am\nt means-- 7,a7 ! basis 
( any newly built qualifi$ freight      
railc> plac$ 9 s]vice by ! taxpay] dur+ 
! taxable ye>1 plus  7,b7 ! qualifi$    
freight railc> mod]nization exp5ditures 
( ! taxpay] = ! taxable ye>4  7#b7      
,qualify+ scrap am\nt ,! t]m qualify+   
scrap am\nt means-- 7,a7 ! depreciat$   
value ( a qualifi$ freight railc>1 z su*
 value is def9$ & calculat$ 9 accordance
 ) ! ,association ( ,am]ican ,railroads 
,int]*ange ,rules1 less  7,b7 ! sum (   
scrap & "p out net proce$s receiv$ by ! 
taxpay] = su* qualifi$ freight railc>4  
7#c7 ,qualify+ railc> facility &        
te*nology mod]nization am\nt ,! t]m     

qualify+ railc> facility equipm5t &     
te*nology mod]nization am\nt means total
 exp5ditures *>geable to capital acc\nt 
by a qualifi$ railway supply company--  
7,a7 = re-equipp+ & enhanc+ !           
infra/ructure ( an exi/+ qualifi$       
facility = ! manufacture1 repair1 or    
mod]nization ( railc>s1 :i*-- 7i7       
enables su* facility1 aft] su*          
improvem5ts1 to mod]nize railc>s su* t  
!y w meet ! requirem5ts ( ! ,association
 ( ,am]ican ,railroads ,/&>d ,s-#bhf or 
! design /&>ds set =? 9 ! ,pipel9e &    
,haz>d\s ,mat]ials ,safety              
,adm9i/ration's ,,hm-#bea f9al rule 7z  
am5d$ by ,,hm-#bea;,c71 or  7ii7 enables
 su* facility to implem5t enhanc$       
controls to meet environm5tal /&>ds     
includ+ emissions limits "u ! ,clean    
,air ,act or wa/ewat] /&>ds "u ! ,clean 
,wat] ,act & correspond+ /ate_/local    
requirem5ts1 or  7,b7 is associat$ ) !  
deploym5t ( te*nology1 includ+ equipm5t1
 us$ by any own] ( a qualifi$ freight   
railc> or an exi/+ qualifi$ facility to 

manufacture1 repair1 or mod]nize railc>s
 or to manufacture railc> compon5ts t   
improves ! effici5cy1 quality1 or safety
 ( railc> or railc> compon5t            
manufactur+1 repair1 mod]nization or    
fleet managem5t op]ations4  7#d7 ,newly 
built replacem5t railc> ,! t]m newly    
built replacem5t railc> means a qualifi$
 freight railc> :i*-- 7,a7 is built aft]
 ! date ( ! enactm5t ( ?is section1 &   
7,b7 is ord]$ or orig9ally plac$ 9      
s]vice be=e ,janu>y #a1 #bjbe4  7#e7    
,orig9ates ,! t]m orig9ates ref]s to !  
c\ntry ( orig9 ( a "p1 compon5t1        
subassembly or f9i%$ product1 z describ$
 9 ! ,rules ( ,orig9 ( ,article #d4b ( !
 ,unit$ ,/ates-,mexico-,canada ,agreem5t
 7#ai ,u4,s4,c4 #deca7;c77 or any       
subsequ5t free trade agreem5t betwe5 !  
,unit$ ,/ates1 ,mexico1 & ,canada4  7#f7
 ,qualifi$ railway supply company ,! t]m
 qualifi$ railway supply company means  
an entity t manufactures1 repairs1      
mod]nizes or owns a qualifi$ freight    
railc> or manufactures compon5ts =      

qualifi$ freight railc>s1 t is n an     
entity t w\ld be ineligible = an aw>d ( 
a contract or subcontract "u #di        
,u4,s4,c4 #ecbc7u74  7#g7 ,qualifi$     
freight railc>  7,a7 ,9 g5]al ,! t]m    
qualifi$ freight railc> means a freight 
railc> t-- 7i7 is ei!r acquir$ or       
mod]niz$ by ! taxpay] aft] ! date ( !   
enactm5t ( ?is section1  7ii7 meets !   
significant improvem5t requirem5ts =    
capacity1 fuel effici5cy1 or p]=mance ( 
subp>agraph 7,b71  7iii7 orig9ates f a  
qualifi$ railway supply company & 0     
built 9 a qualifi$ facility1 &  7iv7 )  
respect to :i* no cr$it "u ?is section  
has be5 previ\sly claim$ by any taxpay]4
  7,b7 ,significant improvem5t          
requirem5ts  7i7 ,9 g5]al ,a freight    
railc> %all be treat$ z meet+           
significant improvem5t requirem5ts =    
capacity1 fuel effici5cy1 or p]=mance   
if-- 7,i7 9 ! case ( a newly built      
replacem5t railc>1 ! taxpay] c]tifies-- 
7aa7 su* railc> is own$ by ! taxpay]1 & 
7bb7 t-- 7,,aa7 su* railc> replaces two 

freight railc>s own$ by ! taxpay] t 7 9 
s]vice )9 ! #dh mon?s prec$+ ! taxable  
ye>1 & 7,,bb7 su* freight railc>s 7     
scrapp$ & p]man5tly remov$ f ! ,,a>     
,uml] ,sy/em ma/] file dur+ ! taxable   
ye>1 &  7,,ii7 9 ! case ( a freight     
railc> t is mod]niz$1 ! taxpay] c]tifies
 t ! mod]nization has result$ 9 a       
significant improvem5t 9 capacity1 fuel 
effici5cy or p]=mance4  7ii7            
,significant improvem5t ,= purposes (   
?is p>agraph1 an improvem5t 9 capacity  
or fuel effici5cy & p]=mance ) respect  
to a mod]niz$ freight railc> %all be    
treat$ z a significant improvem5t if--  
7,i7 su* capacity or fuel effici5cy1 z !
 case may be1 is increas$ by at lea/ #h 
p]c5t1 or  7,,ii7 9 ! case ( p]=mance1 !
 qualifi$ freight railc> meets !        
requirem5ts ( ! ,association ( ,am]ican 
,railroads ,/&>d ,s-#bhf or is mod]niz$ 
to meet ! design /&>ds set =? 9 f9al    
rule ,,hm-#bea ( ! ,pipel9e & ,haz>d\s  
,mat]ials ,safety ,adm9i/ration 7z am5d$
 by ,,hm-#bea;,c74  7,c7 ,mod]niz$ ,!   

t]m mod]niz$ means a modification1      
retr(it1 conv]sion or rebuild = !       
purpose ( meet+ capacity1 fuel          
effici5cy1 or p]=mance crit]ia id5tifi$ 
9 subp>agraph 7,b77ii74  7#h7 ,qualifi$ 
freight railc> mod]nization exp5diture  
,! t]m qualifi$ freight railc>          
significant improvem5t exp5diture means 
any am\nt paid or incurr$-- 7,a7 9      
connection ) ! mod]nization ( a freight 
railc> result+ 9 su* railc> be+         
designat$ a qualifi$ freight railc>1 &  
7,b7 :i* is prop]ly *>geable to a       
capital acc\nt ) respect to su* freight 
railc>4  7#i7 ,qualifi$ facility ,! t]m 
qualifi$ facility means a facility t is 
n own$ by an entity t w\ld be ineligible
 = an aw>d ( a contract or subcontract  
"u #di ,u4,s4,c4 #ecbc7u74  7c7 ,special
 rules  7#a7 ,d5ial ( d\ble b5efit ,no  
cr$it %all be all[$ "u subsection 7a7 = 
any exp5se = :i* a d$uction or cr$it is 
all[$ "u any o!r provision ( ?is *apt]4 
7#b7 ,cr$it treat$ z refundable ,9 !    
case ( any taxable ye> 9 :i* ! taxpay]  

is all[$ a cr$it "u subsection 7a77#a7 &
 is unable to utilize su* cr$it z an    
(fset to _! regul> tax liability1 !     
taxpay] may elect to h su* cr$it treat$ 
z an ov]paym5t & refund$ to ! taxpay] = 
su* ye>4  7#c7 ,basis adju/m5t ,=       
purposes ( ?is subtitle1 if a cr$it is  
all[$ "u subsection 7a77#a7 ) respect to
 any qualifi$ freight railc>1 ! basis ( 
su* railc> %all be r$uc$ by ! am\nt ( ! 
cr$it s all[$4  7#d7 ,sale-leaseback ,= 
purposes ( subsection 7a77#a71 if any   
qualifi$ freight railc> is-- 7,a7       
orig9ally plac$ 9 s]vice by a p]son aft]
 ! date ( ! enactm5t ( ?is section1 &   
7,b7 sold & leas$ back by su* p]son )9  
#c mon?s aft] ! railc>s are orig9ally   
plac$ 9 s]vice 7or1 9 ! case ( m ?an "o 
railc> subject to ! same lease1 )9 #c   
mon?s aft] ! date ! f9al railc> is plac$
 9 s]vice1 s long z ! p]iod betwe5 ! "t 
! fir/ railc> is plac$ 9 s]vice & ! "t !
 la/ railc> is plac$ 9 s]vice does n    
exce$ #bd mon?s71  su* railc> %all be   
treat$ z orig9ally plac$ 9 s]vice n     

e>li] ?an ! date on :i* su* railc> is   
us$ "u ! leaseback ref]r$ to 9 ?is      
p>agraph4  7#e7 ,syndication ,= purposes
 ( subsection 7a77#a71 if-- 7,a7 any    
qualifi$ freight railc> is orig9ally    
plac$ 9 s]vice aft] ! date ( enactm5t ( 
?is section by ! lessor ( su* railc>1   
7,b7 su* railc> is sold by su* lessor or
 any subsequ5t pur*as] )9 #c mon?s aft] 
! date su* railc> 0 orig9ally plac$ 9   
s]vice 7or1 9 ! case ( m ?an "o railc>  
subject to ! same lease1 )9 #c mon?s    
aft] ! date ! f9al railc> is plac$ 9    
s]vice & ! "t ! la/ railc> is plac$ 9   
s]vice does n exce$ #ab mon?s71 &  7,c7 
! us] ( su* railc> aft] ! la/ sale dur+ 
su* #c-mon? p]iod rema9s ! same z :5 su*
 railc> 0 orig9ally plac$ 9 s]vice1 su* 
railc>s %all be treat$ z orig9ally plac$
 9 s]vice n e>li] ?an ! date ( su* la/  
sale4  7#f7 ,entities own$ or controll$ 
by /ate-own$ ent]prises ineligible ,no  
cr$it "u subsection 7a7 %all be all[$ to
 any taxpay] t w\ld be ineligible = an  
aw>d ( a contract or subcontract "u #di 

,u4,s4,c4 #ecbc7u74  7d7 ,t]m9ation ,?is
 section %all n apply to any qualify+   
railc> facility equipm5t & te*nology    
mod]nization am\nt aft] ,decemb] #ca1   
#bjbc1 or to any qualify+ replacem5t or 
mod]nization am\nt1 or any qualify+     
scrap am\nt aft] ,decemb] #ca1 #bjbd4  4
  7b7 ,cr$it all[$ z bus9ess cr$it      
,section #ch7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf 7relat+ to curr5t ye>     
bus9ess cr$it7 is am5d$ by /rik+ plus at
 ! end ( p>agraph 7#cb71 by /rik+ !     
p]iod at ! end ( p>agraph 7#cc7 & ins]t+
 1 plus & by ins]t+ at ! end !re( !     
foll[+ new p>agraph3  7#cd7 ! qualifi$  
freight railc> cr$it det]m9$ "u section 
#de,u4  4  7c7 ,coord9ation ) section   
#ee ,section #ch7;c77#d77;,b7 ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by r$esignat+ clauses 7x71 7xi71 & 7xii7
 z clauses 7xi71 7xii71 & 7xiii7        
respectively1 & by ins]t+ aft] clause   
7ix7 ! foll[+ new clause3  7x7 !        
qualifi$ freight railc> cr$it det]m9$ "u
 section #de,u1  4  7d7 ,cl]ical am5dm5t

 ,! table ( sections = subp>t ,d ( "p   
,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#de,t ! foll[+ new item3  ,sec4 #de,u4  
,qualifi$ freight railc> cr$it4  4  7e7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to prop]ty plac$ 9   
s]vice1 & am\nts paid or incurr$1 aft]  
,april #cj1 #bjbj4  #c4 ,report on !    
qualifi$ freight railc> cr$it  7a7 ,9   
g5]al ,n lat] ?an #c ye>s aft] ! date ( 
! enactm5t ( ?is ,act1 ! ,secret>y ( !  
,treasury 7or ! ,secret>y's delegate71  
%all submit to ! ,committee on ,ways &  
,means ( ! ,h\se ( ,repres5tatives & !  
,committee on ,f9ance ( ! ,s5ate a      
report on activity ) respect to !       
qualifi$ freight railc> cr$it "u section
 #cf;,d ( ! ,int]nal ,rev5ue ,code (    
#aihf4  7b7 ,report cont5ts ,! report   
submitt$ "u subsection 7a7 %all conta9  
in=mation ) respect to ! foll[+3 7#a7 ,!
 numb] ( times ! cr$it 0 claim$4  7#b7  
,! numb] ( railc>s scrapp$ z a result ( 

! cr$it4  7#c7 ,! numb] ( new railc>s   
ent]$ into contract z a result ( !      
cr$it4  7#d7 ,! numb] ( new railc>s     
built z a result ( ! cr$it4  7#e7 ,!    
numb] ( facilities modifi$ z a result ( 
! cr$it4