SB-1287 • 2026

Personal Income Tax Law: Corporation Tax Law: credits: shortline railroad expenditures and railroad infrastructure.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hurtado
Last action: 2026-04-24
Official status: Set for hearing May 4.
Effective date: Not listed

Plain English Breakdown

The official source does not specify the exact requirements for 'qualified taxpayer' or the details on goals and performance indicators.

Shortline Railroad Modernization Act of 2026

The Shortline Railroad Modernization Act of 2026 allows qualified taxpayers to receive a tax credit for spending on shortline railroads and new railroad infrastructure.

What This Bill Does

Allows qualified taxpayers to receive a tax credit equal to 50% of the amount spent on shortline railroad expenses from January 1, 2027, through December 31, 2031.
Provides a similar tax credit for new rail infrastructure starting from January 1, 2028, until December 31, 2032.

Who It Names or Affects

Taxpayers who qualify as making shortline railroad expenditures or new rail infrastructure investments.

Terms To Know

Qualified taxpayer: A person or company that meets the requirements set by law to receive tax credits for spending on shortline railroads and new rail infrastructure.
Tax credit: An amount subtracted directly from a person's tax bill, reducing the total taxes owed.

Limits and Unknowns

The exact details of who qualifies as a 'qualified taxpayer' are not provided in the summary.
It is unclear what specific goals and performance indicators must be included for these tax credits.

Bill History

2026-04-24 California Legislative Information
Set for hearing May 4.
2026-04-22 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 21). Re-referred to Com. on APPR.
2026-04-14 California Legislative Information
Set for hearing April 21.
2026-04-09 California Legislative Information
Read second time and amended. Re-referred to Com. on TRANS.
2026-04-08 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on TRANS. (Ayes 5. Noes 0.) (April 8).
2026-03-25 California Legislative Information
Set for hearing April 8.
2026-03-04 California Legislative Information
Referred to Coms. on REV. & TAX. and TRANS.
2026-02-23 California Legislative Information
Read first time.
2026-02-23 California Legislative Information
From printer. May be acted upon on or after March 23.
2026-02-20 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1287, as amended, Hurtado.
Personal Income Tax Law: Corporation Tax Law: credits: shortline railroad expenditures and railroad infrastructure.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, the Shortline Railroad Modernization Act of 2026, would allow credits against those taxes for each taxable year beginning on or after January 1,
2026,
2027, and before January 1, 2032,
to a qualified taxpayer in an amount equal to 50% of the qualified shortline railroad expenditures and
for each taxable year beginning on or after January 1, 2028, and before January 1, 2033, in an amount equal to
50% of the qualified new
rail infrastructure expenditures, as defined and specified.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF