West Virginia Creates Short Line Railroad Modernization Tax Credit

The West Virginia Governor signed the West Virginia Short Line Railroad Modernization Act. The law includes: 1) creating a nonrefundable tax credit for 50 percent of qualified short line railroad maintenance expenditures, and 50 percent of qualified new rail infrastructure expenditures; 2) limiting the credit by certain amounts; 3) and providing that the credit can be claimed against the individual income tax, the corporate income tax, and the business franchise tax. The law takes effect on June 7, with the provisions of the act becoming effective on Jan. 1, 2027, and sunsetting on July 1, 2031. [S.B. 592, enacted 04/01/26] ...