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H.R. 1200: Freight Rail Assets Investment to Launch Commercial Activity Revitalization Act of 2025

This bill is titled the "Freight Rail Assets Investment to Launch Commercial Activity Revitalization Act of 2025" (or "Freight RAILCAR Act of 2025") and aims to encourage the modernization of freight railcars in the United States through a tax credit system. Here is a summary of the main components of the bill:

Freight Railcar Modernization Credit

Tax Credit: The bill proposes a tax credit equal to 10% of a taxpayer's eligible expenses for modernizing their fleet of freight railcars.
Limit on Cars: Taxpayers can claim the credit for modernization or replacement of no more than 1,000 qualified freight railcars per year.
Eligibility: Modernization expenses that qualify must relate to either replacing outdated railcars with new ones or upgrading existing railcars to meet defined efficiency and performance improvements.

Definitions of Key Terms

Freight Railcar Fleet Modernization Expenses: These include costs associated with replacing or upgrading railcars.
Qualified Newly Built Replacement Railcar: This refers to railcars that are newly manufactured after the bill's enactment, ordered within three years post-enactment, and replace two older railcars that have been scrapped.
Significant Improvement: Upgrades to railcars must increase capacity or fuel efficiency by at least 8%, or meet specific performance standards set by relevant regulatory bodies.
Qualified Facility: This term defines a location where a railcar can be built or modernized, provided it is not owned by those who would be ineligible for federal contracts.

Special Rules

No Double Dipping: Taxpayers cannot claim the new credit for expenses that have already received other tax credits or deductions.
Leaseback Conditions: Certain conditions apply if a railcar is sold and then leased back shortly thereafter, affecting how the credit can be claimed.
State-Owned Enterprises: Entities owned or controlled by state-owned enterprises are ineligible for the tax credit.

Implementation and Reporting

Effective Date: The provisions of the bill apply to expenses incurred after December 31, 2024.
Reporting Requirement: Within three years of the enactment of the bill, the Secretary of the Treasury must submit a report detailing the use of the credit, including the number of claims made, railcars scrapped, and new railcars produced as a result.

Relevant Companies

CSX: As a major freight rail operator, CSX could benefit from this bill by modernizing its fleet, potentially allowing for increased efficiency and reduced operational costs.
UNP: Union Pacific, another leading freight railroad, may also engage in fleet modernization under the proposed tax credits, improving their service offerings and competitive edge.
KSU: Kansas City Southern could see direct benefits by upgrading their railcar fleet through the incentives provided by this legislation.

This is an AI-generated summary of the bill text. There may be mistakes.

Actions

2 actions

Date	Action
Feb. 11, 2025	Introduced in House
Feb. 11, 2025	Referred to the House Committee on Ways and Means.

Corporate Lobbying

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Potentially Relevant Congressional Stock Trades

Estimated excess return of the underlying stock since the transaction

Politician	Stock	Transaction	Filed	Traded
George Whitesides D / House	UNP STOCK, COMPANY-SPECIFIC HOLDINGS INTO PASSIVE ETFS AND MUTUAL FUNDS, PER BEST PRACTICES. C��: TO AVOID ANY POSSIBLE CONFLICTS OF INTEREST WITH MY FUTURE CONGRESSIONAL WORK, I’M TRANSITIONING MY SINGLE STOCK, COMPANY-SPECIFIC HOLDINGS INTO PASSIVE ETFS AND MUTUAL FUNDS, PER BEST PRACTICES. UNION PACIFIC CORPORATION COMMON STOCK	Sale $50,001 - $100,000	Apr 23, 2025	Mar 24, 2025	-4.92%
Jefferson Shreve R / House	CSX CSX CORPORATION	Sale $15,001 - $50,000	Apr 11, 2025	Mar 13, 2025	-4.24%
Bruce Westerman R / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $1,001 - $15,000	Apr 16, 2025	Mar 04, 2025	-7.10%
Julie Johnson D / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $1,001 - $15,000	Mar 12, 2025	Feb 25, 2025	-5.88%
Robert Bresnahan R / House	CSX CSX CORPORATION	Sale $1,001 - $15,000	Mar 27, 2025	Feb 25, 2025	-5.87%
Jefferson Shreve R / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $15,001 - $50,000	Mar 09, 2025	Feb 24, 2025	-4.15%
Josh Gottheimer D / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $1,001 - $15,000	Mar 06, 2025	Feb 03, 2025	-4.30%
Josh Gottheimer D / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $1,001 - $15,000	Feb 10, 2025	Jan 29, 2025	-5.98%
Josh Gottheimer D / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $1,001 - $15,000	Jan 14, 2025	Dec 13, 2024	-0.32%
Mike Kelly R / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Sale $15,001 - $50,000	Dec 12, 2024	Nov 08, 2024	-3.71%
Dan Newhouse R / House	CSX CSX CORPORATION - COMMON STOCK	Purchase $1,001 - $15,000	Apr 25, 2024	Apr 10, 2024	-28.46%
Tommy Tuberville R / Senate	CSX CSX Corporation - Common Stock	Sale (Full) $15,001 - $50,000	Apr 15, 2024	Mar 12, 2024	-32.93%
Tommy Tuberville R / Senate	UNP Union Pacific Corporation Common Stock	Sale (Partial) $15,001 - $50,000	Feb 14, 2024	Jan 03, 2024	-29.24%
John R. Curtis R / House	UNP UNION PACIFIC CORPORATION	Sale $1,001 - $15,000	Dec 15, 2023	Dec 04, 2023	-29.39%
John R. Curtis R / House	CSX CSX CORPORATION	Sale $1,001 - $15,000	Dec 15, 2023	Dec 04, 2023	-37.87%
John James R / House	UNP UNION PACIFIC CORPORATION COMMON STOCK	Purchase $1,001 - $15,000	Sep 02, 2024	Nov 10, 2023	-24.16%
Carol D. Miller R / House	UNP A PRICE OF $8.61/SHARE, RESULTING IN A GAIN OF $99.76 UNION PACIFIC CORPORATION	Sale $15,001 - $50,000	Dec 07, 2023	Nov 03, 2023	-26.16%
Greg Stanton D / House	UNP UNION PACIFIC CORPORATION	Sale $1,001 - $15,000	Nov 09, 2023	Oct 24, 2023	-26.22%
Tommy Tuberville R / Senate	UNP Union Pacific Corporation Common Stock	Sale (Full) $1,001 - $15,000	Nov 16, 2023	Oct 17, 2023	-25.42%
Tommy Tuberville R / Senate	CSX CSX Corporation - Common Stock	Sale (Partial) $1,001 - $15,000	Nov 16, 2023	Oct 16, 2023	-37.71%
Markwayne Mullin R / Senate	CSX CSX Corporation - Common Stock	Purchase $1,001 - $15,000	Nov 01, 2023	Oct 03, 2023	-40.17%
Markwayne Mullin R / Senate	UNP Union Pacific Corp	Purchase $1,001 - $15,000	Nov 01, 2023	Oct 03, 2023	-25.98%
Greg Stanton D / House	UNP UNION PACIFIC CORPORATION	Purchase $1,001 - $15,000	Nov 09, 2023	Sep 26, 2023	-24.73%
Pete Ricketts R / Senate	UNP Union Pacific Corporation Common Stock	Sale (Full) $100,001 - $250,000	Oct 20, 2023	Sep 21, 2023	-26.29%
John R. Curtis R / House	UNP UNION PACIFIC CORPORATION	Sale $1,001 - $15,000	Oct 04, 2023	Sep 13, 2023	-22.79%
Markwayne Mullin R / Senate	UNP Union Pacific Corporation Common Stock	Purchase $15,001 - $50,000	Oct 12, 2023	Sep 13, 2023	-22.79%
Markwayne Mullin R / Senate	CSX CSX Corporation - Common Stock	Purchase $15,001 - $50,000	Oct 12, 2023	Sep 13, 2023	-32.06%
Lois Frankel D / House	UNP UNION PACIFIC CORPORATION	Sale $1,001 - $15,000	Oct 10, 2023	Sep 08, 2023	-22.92%
Robert J. Wittman R / House	UNP UNION PACIFIC CORPORATION	Sale $1,001 - $15,000	Sep 30, 2023	Jul 27, 2023	-29.82%
Zoe Lofgren D / House	UNP UNION PACIFIC CORPORATION	Sale $15,001 - $50,000	Jun 06, 2023	May 26, 2023	-20.71%
John R. Curtis R / House	CSX CSX CORPORATION	Purchase $1,001 - $15,000	May 10, 2023	Apr 26, 2023	-43.89%