U.S. Reps. Darin LaHood (R-IL) and Brad Schneider (D-IL) joined 38 of their colleagues in the U.S. House of Representatives to reintroduce legislation creating tax credits to encourage freight railcar replacement.
If passed, the Freight RAILCAR Act of 2025, H.R. 1200, would provide a nonrefundable 10 percent tax credit for the replacement or modification of existing railcars over a three-year period. The credit is limited to 1,000 new freight cars per taxpayer and would only apply to the replacement of railcars that have been in service for 48 months prior to the bill’s enactment.
“Illinois’ rail network is a vital economic driver that impacts agriculture, manufacturing, and our local communities,” LaHood said. “I am proud to reintroduce the Freight RAILCAR Act of 2025 alongside Rep. Schneider to spur job growth and strengthen the United States’ infrastructure. Not only will this legislation improve the efficiency of railcars, but it will address supply chain constraints and support American manufacturing jobs.”
Officials said the legislation would renew investment in higher capacity, fuel-efficient freight railcar manufacturing, and would support hundreds of thousands of freight rail industry jobs
“Our rail network is crucial for commuters, farmers, and manufacturers all across Illinois and any weakness in that network is not only a short-term inconvenience but has long term consequences for our supply chain,” Schneider said. “I am proud to introduce this legislation with my colleague, Rep. LaHood, so we can bring our rail fleet into the 21st century and promote quality, well-paying jobs in the rail sector.”