On Tuesday, U.S. Rep. Mike Kelly, R-16th, introduced the Short Line Railroad Tax Credit Modernization Act in partnership with fellow Rep. Mike Thompson, D-Ca.

The bill seeks to increase the tax credit on qualified railroad track maintenance expense from $3,500 per tax year to $6,100, while also expanding eligibility for claiming the credit.

Both Kelly and Thompson are members of the House Ways and Means Subcommittee on Tax. Kelly serves as chairman and Thompson as ranking Democrat.

Kelly introduced a similar bill in September 2024, which was cosponsored by former Rep. Earl Blumenauer, D-Ore., but made no progress beyond its introduction before the end of the 118th Congress.