What is the Short Line Railroad Tax Credit?

The Kansas short line railroad tax credit is for 50% of qualified railroad track maintenance expenditures made by eligible taxpayers. An eligible taxpayer may be either:

1. Any railroad subject to the Kansas income tax that is classified by the United States surface transportation board a Class II or Class III railroad, as defined by 49 C.F.R. 1201.1-1(a), as in effect on January 1, 2022; or
2. Any owner or lessee of a rail siding located on or adjacent to a Class II or Class III railroad in Kansas.

For more information, please see Kansas Schedule K-29 .