In 2019, the Oregon State Legislature passed House Bill (HB) 2164, establishing a tax credit for short line railroads that rehabilitate their infrastructure. Tax Credit For Short Line Railroad Rehabilitation (Sections 6 through 17 of HB 2164) requires the Oregon Department of Transportation (ODOT) to administer tax credit certifications to qualified short line railroads that rehabilitate their Oregon infrastructure beginning January 1, 2020.
The Oregon Transportation Commission has approved administrative rules and application forms for this program.
In 2023, the Oregon State Legislature passed House Bill (HB) 3406, amending this tax credit program. Regardless of whether the applicant applies for the federal tax credit under section 45G of the Internal Revenue Code, the amount eligible to qualify for the federal tax credit shall be deducted from the applicant's rehabilitation project costs before calculating the applicant's Oregon tax credit.
Deadline: Applicants may submit annually their application for preliminary certification during a six-month period between August 1 and January 31.
In 2024, the Oregon State Legislature passed Senate Bill (SB) 1526, extending the program to tax years beginning before January 1, 2030.
Resources
RD 1-2020, Chapter 741, Standards to Determine Project Eligibility and Application Procedures
Preliminary Certification Application
Certification Amendment Application
Final Certification Application
House Bill 2164: Tax Credit For Short Line Railroad Rehabilitation
House Bill 3406: Amendments to Tax Credit for Short Line Railroad Rehabilitation