45G
Tax Credits
EKN Rail Company can help you take advantage of this important program to make the investment you need for your track and your company. We help our shortline railroad clients by connecting them with other railroads to utilize this fully-transferable tax credit by matching railroads and rail users who have made a qualifying investment but lack a tax liability with those who have a tax liability and may be able to use the credit. We also advise our customers and assist them in completing the necessary assignment paperwork when transferring credits.
EKN has begun lining up buyers and sellers of tax credit miles for tax year 2026. Our buyers are paying market-based rates again this year. Combined with our $50/mile transaction fee, our sellers will net maximum income from their tax credits.
The Railroad Track Maintenance Credit, also known as the shortline tax credit or 45G credit, was enacted by Congress in 2004 and went into effect in 2005. It acts as an incentive for shortline and regional railroads and the companies that use them, to maintain and improve their rail infrastructure. It provides a tax credit for track maintenance and other qualifying infrastructure expenses for class II and III railroads and their shippers, and companies that provide materials or service to those railroads.
The tax credit provides up to $3,500 per mile for qualifying maintenance. In addition to railroads and their shippers and suppliers being able to claim this tax credit, railroads may also be able to transfer their credits if they are not able to use them, or obtain credits from another railroad if they have a need for additional miles.