Wis. Stat. § 238.309 — WI Code / Chapter 238 / Section 238.309
Rail infrastructure tax credits.
Status: in_force

(1) Definitions. In this section:

(a) “Local government” means a city, village, town, county, or American Indian band or tribe in this state or a unit or instrumentality of a city, village, town, or county.

(b) “Qualified new rail infrastructure expenditures” means capital expenditures for rail infrastructure and improvements in this state placed in service after December 31, 2025, including expenditures for the acquisition of right-of-way; engineering; construction of new track such as industrial leads, switches, spurs, and sidings; rehabilitation of existing inactive track to reinstate operation; loading dock improvements; and transloading structures involved with servicing customer locations or expansions.

(c) “Qualified short line railroad maintenance expenditures” means all of the following:

1. Gross expenditures for railroad infrastructure rehabilitation or maintenance improvements located in this state, including rail, tie plates, joint bars, fasteners, switches, ballast, subgrade, roadbed, industrial leads, sidings, signs, safety barriers, crossing signals and gates, and related track structures.

2. Gross expenditures for 3rd-party labor related to expenditures described in subd. 1.

3. Gross expenditures for wages paid to employees in positions directly related to maintenance activities for expenditures described in subd. 1.

(d) “Rail infrastructure maintenance credit” means the income and franchise tax credits under ss. 71.07 (8v) , 71.28 (8v) , and 71.47 (8v) .

(e) “Rail infrastructure modernization credit” means the income and franchise tax credits under ss. 71.07 (8t) , 71.28 (8t) , and 71.47 (8t) .

(2) Certification.

(a) The corporation may certify to claim tax benefits under sub. (3) any of the following:

1. A railroad company that has a railroad in this state and that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

2. An owner or lessee of a rail siding, industrial spur, or industry track on or adjacent to a railroad in this state during the taxable year to which the claim applies.

3. A local government.

(b) The corporation may certify to claim tax benefits under sub. (4) a railroad company that has a railroad in this state that is classified by the federal surface transportation board as a class II or class III railroad for the taxable year to which the claim applies.

(c) The corporation shall certify persons under pars. (a) and (b) on a first come, first serve basis.

(d) The corporation shall enter into a contract with each person certified under par. (a) or (b) .

(e) The corporation shall, under s. 189.02 (8) , consult with the office of the commissioner of railroads or the department of transportation to verify that a person seeking certification under par. (a) or (b) meets the conditions under par. (a) or (b) , respectively.

(3) Rail infrastructure modernization credit. A person certified under sub. (2) (a) may claim a rail infrastructure modernization credit in an amount equal to up to 50 percent of the qualified new rail infrastructure expenditures made by the person during the taxable year to which the claim relates. The amount the corporation certifies the person to claim under this subsection may not exceed $2,000,000.

(4) Rail infrastructure maintenance credit. A person certified under sub. (2) (b) may claim a rail infrastructure maintenance credit in an amount equal to up to 50 percent of the qualified short line railroad maintenance expenditures made by the person during the taxable year to which the claim relates. The amount the corporation certifies the person to claim under this subsection may not exceed an amount equal to $5,000 multiplied by the number of miles of railroad track owned or leased by the claimant in this state on December 31 of the taxable year to which the claim applies.

(5) Limitations.

(a) The corporation may allocate up to $10,000,000 in tax benefits under sub. (3) in each calendar year, including, if a person’s taxable year begins or ends on a different date than the calendar year begins or ends, a portion of the person’s tax benefits calculated based on the number of days in the person’s taxable year that fall within the calendar year.

(b) The department of revenue has full power to administer tax credits transferred under s. 71.07 (8t) (e) or (8v) (e) , 71.28 (8t) (e) or (8v) (e) , or 71.47 (8t) (e) or (8v) (e) and may take any action, conduct any proceeding, and proceed as it is authorized in respect to income and franchise taxes imposed under ch. 71 . The income and franchise tax provisions in ch. 71 relating to assessments, refunds, appeals, collection, interest, and penalties apply to tax credits transferred under s. 71.07 (8t) (e) or (8v) (e) , 71.28 (8t) (e) or (8v) (e) , or 71.47 (8t) (e) or (8v) (e) .

(6) Duties.

(a) The corporation shall establish policies and procedures for the administration of this section, including policies and procedures specifying conditions for revoking a certification to claim tax benefits under sub. (2) (a) or (b) .

(b) The corporation shall verify, under s. 238.03 (2) (e) , the information submitted to the corporation by the person for the purpose of claiming tax benefits under this section.

(c) The corporation shall notify the department of revenue of a certification for tax benefits under this section within 30 days after the certification.

History: 2025 a. 242 ; s. 35.17 correction in (1) (a).