,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #bbhi  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #bi1 #bjba,mr4   
,s*neid] 7= himself1 ,mr4 ,la,hood1 ,mr4
 ,bi%op ( ,georgia1 ,mr4 ,blum5au]1 ,ms4
 ,bonamici1 ,mr4 ,craw=d1 ,mr4 ,rodney  
,davis ( ,ill9ois1 ,mr4 ,gohm]t1 ,mr4   
,payne1 ,ms4 ,sewell1 ,mrs4 ,walorski1 &
 ,mr4 ,web] ( ,texas7 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 ( #bjba or !  
,freight ,,railc> ,act ( #bjba4  #b4    
,freight railc> mod]nization 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 ,freight  

railc> mod]nization cr$it  7a7 ,g5]al   
rule ,= purposes ( section #ch1 !       
freight railc> mod]nization cr$it       
det]m9$ "u ?is section = ! taxable ye>  
is an am\nt equal to #ej p]c5t ( !      
taxpay]'s freight railc> fleet          
mod]nization exp5ses4  7b7 ,def9itions  
,= purposes ( ?is section-- 7#a7        
,freight railc> fleet mod]nization      
exp5ses ,! t]m freight railc> fleet     
mod]nization exp5ses means ! sum (--    
7,a7 ! qualify+ railc> replacem5t &     
mod]nization am\nt1  7,b7 ! qualify+    
scrap am\nt1 &  7,c7 ! qualify+ railc>  
facility & te*nology mod]nization am\nt4
  7#b7 ,qualify+ railc> replacem5t &    
mod]nization am\nt ,! t]m qualify+      
railc> replacem5t & mod]nization am\nt  
means-- 7,a7 ! basis ( any qualifi$     
newly built replacem5t railc> plac$ 9   
s]vice by ! taxpay] dur+ ! taxable ye>1 
plus  7,b7 ! qualifi$ railc>            
mod]nization exp5ditures ( ! taxpay] = !
 taxable ye>4  7#c7 ,qualify+ scrap     
am\nt ,! t]m qualify+ scrap am\nt       

means-- 7,a7 ! depreciat$ value or      
salvage value1 z applicable1 ( a        
qualifi$ freight railc> 7z su* value is 
def9$ & calculat$ 9 accordance ) !      
,association ( ,am]ican ,railroads      
,int]*ange ,rules7 :i* is scrapp$ by !  
taxpay] & p]man5tly remov$ f ! ,,a>     
,uml] ,sy/em ma/] file dur+ ! taxable   
ye>1 less  7,b7 ! sum ( scrap & "p out  
net proce$s receiv$ by ! taxpay] = su*  
qualifi$ freight railc>4 ,= purposes (  
?is subp>agraph1 scrap proce$s %all be  
calculat$ by us+ ! ,association (       
,am]ican ,railroads ,(fice ,manual p]   
p\nd cr$its = /eel1 /a9less /eel1 &     
alum9um 7z applicable7 9 effect on !    
date railc> is scrapp$4  7#d7 ,qualify+ 
railc> facility & te*nology mod]nization
 am\nt ,! t]m qualify+ railc> facility  
equipm5t & te*nology mod]nization am\nt 
means am\nts paid or incurr$ by !       
taxpay] = any railc> facility &         
te*nology mod]nization prop]ty plac$ 9  
s]vice dur+ ! taxable ye>4 7,a7 ,railc> 
facility & te*nology mod]nization       

prop]ty ,! t]m railc> facility &        
te*nology mod]nization prop]ty means    
prop]ty-- 7i7 *>geable to capital       
acc\nt1  7ii7 plac$ 9 s]vice by a       
qualifi$ railway supply company1  7iii7 
! orig9al use ( :i* comm5ces ) !        
taxpay]1  7iv7 :i* is us$ to mod]nize an
 exi/+ qualifi$ facility or exi/+       
railc>s1 &  7v7 is us$ = mod]nization   
purposes4  7,b7 ,mod]nization ( exi/+   
qualifi$ facilities or exi/+ railc>s    
,prop]ty is us$ to mod]nize an exi/+    
qualifi$ facility or an exi/+ railc> if 
su* prop]ty-- 7i7 enables su* facility  
to implem5t enhanc$ controls to meet    
environm5tal /&>ds1 includ+ emissions   
limits "u ! ,clean ,air ,act or wa/ewat]
 /&>ds "u ! ,clean ,wat] ,act &         
correspond+ ,/ate_/local requirem5ts1 or
  7ii7 is associat$ ) ! deploym5t (     
te*nological equipm5t us$ by any own] ( 
a freight railc>1 or ( an exi/+ qualifi$
 facility1 to manufacture1 repair1 or   
mod]nize railc>s1 or manufacture railc> 
compon5ts t improve ! effici5cy1        

quality1 or safety (-- 7,i7 fleet       
managem5t op]ations1 or  7,,ii7 railc>  
or railc> compon5t manufactur+1 repair1 
or mod]nization op]ations conduct$      
pursuant to activity code c]tifications 
"u ! ,association ( ,am]ican ,railroads 
,manual ( ,/&>ds & ,recomm5d$ ,practice1
 ,section ,c1 ,"p ,,iii1 ,app5dix ,b    
7,specification ,m#ajjb7 or ,association
 ( ,am]ican ,railroads ,manual ( ,/&>ds 
& ,recomm5d$ ,practice1 ,section ,j1    
,quality ,assurance 7,specification     
,m-#ajjc74  7,c7 ,mod]nization purposes 
,= purposes ( ?is p>agraph1 ! foll[+    
types ( prop]ty %all be consid]$ z us$ =
 mod]nization purposes-- 7i7 te/+ &     
reliability equipm5t t facilitates !    
developm5t ( saf] railc>s & railc>      
compon5ts by ,,a> c]tifi$ manufactur]s1 
includ+ accel]at$ life-cycle te/+       
equipm5t1  7ii7 innovative te*nological 
equipm5t t g5]ates data relat+ to !     
op]at+ conditions ( roll+ /ock &        
communicates su* data 9 an effici5t     
mann]1 ) ! goal ( improv+ railc> fleet  

safety1 includ+ sm>t te*nology on c>s to
 monitor conditions su* z leaks1        
equipm5t damage1 or high accel]ation    
ev5ts1  7iii7 remote controll$          
te*nological equipm5t t all[s =         
inspections1 clean+ or repairs to       
railc>s to be conduct$ remotely1  7iv7  
equipm5t :i* increases ! effici5cy or   
capacity (1 & enhances environm5tal     
controls relat$ to facilities :i*       
conduct ,,a> c]tifi$ bla/+1 clean+1     
coat+1 & pa9t+ railc> activities1  7v7  
reg5]ative !rmal oxidiz]s ( volatile    
organic comp\nds or haz>d\s air         
pollutants1 &  7vi7 innovative          
te*nological equipm5t or s(tw>e t w     
enhance ! effici5cy ( a railc> own]'s   
fleet managem5t sy/ems1 includ+ programs
 t map tim+ & r\t+ ( railc>s to repair  
%ops or /orage facilities t improve     
effici5cy ( rail transportation4  7#e7  
,qualifi$ newly built replacem5t railc> 
,! t]m qualifi$ 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 #bjbe1 &  7,c7 replaces two freight
 railc>s own$ by ! taxpay] t-- 7i7 7 9  
s]vice )9 ! #dh mon?s prec$+ ! beg9n+ ( 
! taxable ye>1 &  7ii7 :i* 7 bo? scrapp$
 & p]man5tly remov$ f ! ,,a> ,uml]      
,sy/em ma/] file dur+ su* taxable ye>4  
7#f7 ,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#g7
 ,qualifi$ railway supply company ,! t]m
 qualifi$ railway supply company means  
an entity t manufactures1 repairs1      
mod]nizes or owns freight railc>s or    
manufactures compon5ts = 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#h7 ,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$it "u   
?is section 0 previ\sly claim$ by any   
taxpay]4  7,b7 ,significant improvem5t  
,= purposes ( ?is p>agraph1 an          
improvem5t 9 capacity or fuel effici5cy 
& p]=mance ) respect to a mod]niz$      
freight railc> is a significant         
improvem5t if-- 7i7 su* capacity or fuel
 effici5cy1 z ! case may be1 is increas$
 by at lea/ #h p]c5t1 or  7ii7 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 modifi$1
 retr(itt$1 conv]t$ or rebuilt = !      
purpose ( meet+ ! significant improvem5t
 crit]ia ( subp>agraph 7,b74  7#i7      
,qualifi$ railc> mod]nization exp5diture
 ,! t]m qualifi$ railc> mod]nization    
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#aj7 ,qualifi$ 
facility ,! t]m qualifi$ facility means 
a facility t is locat$ )9 ! ,unit$      
,/ates & own$ by any entity o!r ?an 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$it "u subsection 7a7 & is 
unable to use su* cr$it z an (fset to ! 
regul> tax liability ( su* taxpay]1 su* 
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 7a7 ) respect to any
 qualifi$ freight railc>1 ! basis ( su* 
railc> %all be r$uc$ by ! am\nt ( !     
cr$it s all[$4  7#d7 ,sale-leaseback ,= 
purposes ( subsection 7a71 if any       
qualifi$ 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] su* railc> is 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 7a71 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   
#bjbd1 or to any qualify+ railc>        
replacem5t & mod]nization am\nt1 or any 
qualify+ scrap am\nt aft] ,decemb] #ca1 
#bjbe4  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 ! freight 
railc> mod]nization 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$esignat+ clauses 7x71 7xi71 &
 7xii7 z clauses 7xi71 7xii71 & 7xiii7  
respectively1 & by ins]t+ aft] clause   
7ix7 ! foll[+ new clause3  7x7 ! freight
 railc> mod]nization cr$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  
,freight railc> mod]nization 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$1 aft]
 ,april #cj1 #bjba4  #c4 ,report on !   
freight railc> mod]nization cr$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$it "u section
 #de,u ( ! ,int]nal ,rev5ue ,code (     
#aihf4  7b7 ,report cont5ts ,! report   
submitt$ "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