Indiana DOR Updates Railroad Tax Credit Guidance With New Assignment Rules

The Indiana Department of Revenue (DOR) issued an updated income tax information bulletin, replacing its December 2025 version, providing updated guidance on the Railroad Tax Credit for Qualified Infrastructure Investment under IC 6-3.1-38.1, effective upon publication. The bulletin clarifies two separate nonrefundable credits with five-year carryforward periods: the New Rail Credit (50 percent of qualified new rail infrastructure expenditures or $500,000 per project, whichever is less, with a $5,000,000 annual state cap) and the Rail Expenditure Credit ($3,500 times the number of Class 2 or Class 3 miles in Indiana or 50 percent of qualified expenditures, whichever is less, with ...