,i  #aag? ,,congress  #b;d ,session  ,h4
 ,r4 #gijb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #bg1 #bjbb,mr4   
,s*neid] 7= himself1 ,mr4 ,la,hood1 ,mr4
 ,bacon1 ,mr4 ,bi%op ( ,georgia1 ,mr4   
,blum5au]1 ,ms4 ,bonamici1 ,mr4 ,bo/1   
,mr4 ,craw=d1 ,mr4 ,rodney ,davis (     
,ill9ois1 ,mr4 ,mi*ael ,f4 ,doyle (     
,p5nsylvania1 ,mr4 ,gohm]t1 ,mr4 ,tony  
,gonzales ( ,texas1 ,ms4 ,grang]1 ,ms4  
,h]r]a ,beutl]1 ,mr4 ,hudson1 ,mr4      
,huffman1 ,mr4 ,kildee1 ,mr4 ,mc,caul1  
,mr4 ,mc,kinley1 ,mr4 ,meij]1 ,mr4      
,nehls1 ,mr4 ,panetta1 ,mr4 ,payne1 ,mr4
 ,rog]s ( ,alabama1 ,ms4 ,sn*ez1 ,ms4   
,sewell1 ,mrs4 ,walorski1 ,mr4 ,web] (  
,texas1 & ,mr4 ,williams ( ,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 ( #bjbb or ! ,freight ,,railc> ,act
 ( #bjbb4  #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$it  7a7 ,9 g5]al ,=     
purposes ( section #ch1 ! freight railc>
 mod]nization cr$it det]m9$ "u ?is      
section = ! taxable ye> is an am\nt     
equal to #aj p]c5t ( ! taxpay]'s freight
 railc> fleet mod]nization exp5ses4  7b7
 ,limitation ,no m ?an #b1jjj qualifi$  
freight railc>s p] taxpay] may be tak5  
into acc\nt = purposes ( det]m9+ ! cr$it
 "u subsection 7a7 ) respect to a       
taxable ye>4  7c7 ,def9itions ,=        
purposes ( ?is section-- 7#a7 ,freight  
railc> fleet mod]nization exp5ses ,! t]m
 freight railc> fleet mod]nization      
exp5ses means ! sum ( ! qualify+ railc> 
replacem5t & 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 ,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 #bjbd1 &
  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#d7   
,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 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#e7 ,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#f7 ,qualifi$  
facility ,! t]m qualifi$ facility means 
a facility t is n own$ or leas$ by an   
entity t w\ld be ineligible = an aw>d ( 
a contract or subcontract "u #di        
,u4,s4,c4 #ecbc7u74  7d7 ,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 ,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[$4  7#c7 ,sale-leaseback ,= purposes
 ( subsection 7a71 if any qualifi$      

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#d7 ,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#e7 ,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  7e7 ,t]m9ation ,?is
 section %all n apply to any qualify+   
railc> replacem5t & mod]nization 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 ! 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$1 aft]
 ,decemb] #ca1 #bjba4  #c4 ,report on ! 
freight railc> mod]nization cr$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