SEC. 5. PAYMENTS OF CREDIT RISK PREMIUMS. 
Section 502(f) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822) is 
amended by adding at the end the following: 
‘‘(5) AVAILABILITY
OF
GRANT
AMOUNTS.— 
Amounts provided under the heading ‘Office of the 
Secretary—National Infrastructure Investments’ in 
the Department of Transportation Appropriations 
Act, 2016 (title I of division L of Public Law 114– 
113), the Transportation, Housing and Urban De-
velopment, and Related Agencies Appropriations 
Act, 2018 (title I of division L of Public Law 115– 
141), or any subsequent appropriation Act may be 
used to pay credit risk premiums under this sub-
section. 
‘‘(6) REFUND
OF
PREMIUM.—The Secretary 
shall repay the credit risk premium required under 
this subsection not later than 60 days after the date 
on which all obligations attached to each such loan 
have been satisfied.’’. 
SEC. 6. PRIVATE ACTIVITY BONDS. 
(a) NATIONAL LIMITATION.—Section 142(m)(2)(A) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘$15,000,000,000’’ and inserting ‘‘$30,000,000,000’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to allocations made on or after 
the date of the enactment of this Act. 
SEC. 7. ACQUIRING FREIGHT TRAIN RIGHT OF WAY. 
(a) IN GENERAL.—Chapter 261 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 26107. Acquiring freight rail right-of-way 
‘‘(a) SALE OF PROPERTY.—A rail carrier may sell, 
grant an easement on, or lease real property to a recipient 
of financial assistance under section 26101 or section 
26106. 
‘‘(b) GRANTS
FOR ACQUISITION
OF ADDITIONAL 
REAL PROPERTY ALONG RIGHT-OF-WAY.—In the case of 
a rail carrier that sells, grants an easement, or leases 
property under subsection (a) and that acquires additional 
real property along the portion of the right-of-way subject 
to such sale, grant, or lease, the Secretary of Transpor-
tation shall make one or more grants to such rail carrier 
which, in the aggregate, shall not exceed the aggregate 
amounts received by such rail carrier pursuant to such 
sale, grant, or lease. 
‘‘(c) TAX TREATMENT.— 
‘‘(1) EXCLUSION OF GAIN, ETC.—Any gain on 
the sale of any interest in real property described in 
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subsection (a) (including the granting of an ease-
ment on such real property), or any payment made 
under any lease of such real property, shall not be 
includible in the gross income of such rail carrier for 
purposes of the Internal Revenue Code of 1986. 
‘‘(2) EXCLUSION
OF
GRANT
AMOUNTS.—The 
amount of grant provided under subsection (b) shall 
not be includible in the gross income of the recipient 
of such grant for purposes of the Internal Revenue 
Code of 1986. 
‘‘(3) EXCLUSION
OF
CERTAIN
CAPITAL
IM-
PROVEMENTS.—Any capital investment or improve-
ment (including turnouts, passing track, signaling, 
crossings, and barriers) made pursuant to section 
26101 or section 26106 by a recipient of financial 
assistance under such section on any real property 
owned by the rail carrier referred to in subsection 
(a) shall not be includible in the gross income of 
such rail carrier for purposes of the Internal Rev-
enue Code of 1986. 
‘‘(d) APPLICABILITY OF LAW.—Section 28103 shall 
apply to property described in subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 261 of title 49, United States Code, is amended by 
adding at the end the following: 
‘‘26107. Acquiring freight rail right-of-way.’’. 
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SEC. 8. OPERATORS DEEMED RAIL CARRIERS AND EM-
PLOYERS. 
Section 22905(b) of title 49, United States Code, is 
amended— 
(1) in the heading by striking ‘‘OPERATORS’’ 
and inserting ‘‘COVERED PERSONS’’; 
(2) by striking ‘‘A person that’’ and all that fol-
lows through ‘‘chapter’’ and inserting ‘‘(1) IN GEN-
ERAL.—A covered person’’; 
(3) 
by 
striking 
‘‘as 
defined 
in 
Section 
10102(5)’’ and all that follows through ‘‘applies’’ 
and inserting ‘‘only for the purposes of making it 
subject to the laws of the United States referred to 
in section 10501(c)(3)(A) of title 49, United States 
Code’’; 
(4) by redesignating paragraphs (1), (2), and 
(3) as (i), (ii), and (iii); and 
(5) by adding at the end the following new 
paragraph: 
‘‘(2) COVERED PERSON DEFINED.—In this sub-
section, the term ‘covered person’— 
‘‘(A) means— 
‘‘(i) a person that conducts passenger 
rail operations over rail infrastructure con-
structed or improved with funding provided 
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in whole or in part in a grant made under 
this chapter; and 
‘‘(ii) a person that performs work for, 
or in support of, passenger rail operations 
that is work performed by employees in 
crafts and classes recognized under section 
2 of the Railway Labor Act (45 U.S.C. 
152); 
‘‘(B) does not include— 
‘‘(i) an employer engaged primarily in 
the building and construction industry (as 
such term is used in section 8(f) of the 
National Labor Relations Act (29 U.S.C. 
158(f))) who is solely performing work as 
a contractor for a rail carrier; 
‘‘(ii) an employer solely performing 
work as a contractor or subcontractor 
for— 
‘‘(I) a railroad that owns, uses, 
or is contracted to perform work on, 
rail infrastructure constructed or im-
proved with funding provided in whole 
or in part in a grant made under this 
chapter; or 
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‘‘(II) an operator that uses such 
infrastructure, 
consistent with a collective bargaining 
agreement between the railroad or operator 
and a union representing employees in a 
craft or class recognized under section 2 of 
the Railway Labor Act (45 U.S.C. 152).’’. 
Æ 
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