SHORT LINE RAILROAD ACT

Illinois General Assembly - Full Text of HB2832

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2832

Introduced 2/6/2025, by Rep. Charles Meier

SYNOPSIS AS INTRODUCED:

New Act
5 ILCS 140/7.5
35 ILCS 5/246 new

Creates the Short Line Railroad Infrastructure Modernization Act.
Provides that (i) any railroad company that is located wholly or partly
within the State and that is classified by the United States Surface
Transportation Board as a Class II or a Class III railroad and (ii) any
owner or lessee of a rail siding, industrial spur, or industry track
located on or adjacent to any railroad in the State may apply to the
Department of Transportation for an income tax credit. Provides that the
amount of the credit shall be equal to 50% of the qualified railroad
reconstruction or replacement expenditures incurred by the eligible
taxpayer during the taxable year, but not to exceed certain specified
limitations. Provides that the credit may be transferred to an eligible
transferee. Amends the Freedom of Information Act and the Illinois Income
Tax Act to make conforming changes. Effective immediately.
LRB104 07492 HLH 17535 b

A BILL FOR

HB2832
LRB104 07492 HLH 17535 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
Short
5
Line Railroad Infrastructure Modernization Act.

6

Section 5.
Definitions.
As used in this Act:
7

"Applicant" means an applicant for a credit under this
8
Act.
9

"Credit" means the Short Line Railroad Infrastructure
10
Modernization Credit awarded under this Act.
11

"Department" means the Department of Transportation.
12

"Eligible taxpayer" means:
13

(1) any railroad company located wholly or partly
14

within the State that is classified by the United States
15

Surface Transportation Board as a Class II or a Class III
16

railroad; and
17

(2) any owner or lessee of a rail siding, industrial
18

spur, or industry track located on or adjacent to any
19

railroad in the State.
20

"Eligible transferee" means any taxpayer that is subject
21
to tax under the Illinois Income Tax Act.
22

"Qualified railroad reconstruction or replacement
23
expenditures" means the gross expenditures incurred by the

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1
eligible taxpayer in the taxable year for:
2

(1) maintenance, reconstruction, or replacement of
3

railroad infrastructure;
4

(2) new construction of industrial leads, switches,
5

spurs, and sidings in Illinois by a Class II or a Class III
6

railroad; and
7

(3) extensions of existing sidings in Illinois by a
8

Class II or a Class III railroad.
9

"Railroad infrastructure" means track, roadbed, bridges,
10
industrial leads and sidings, and track-related structures
11
owned or leased by a Class II or Class III railroad in Illinois
12
as of January 1, 2024.

13

Section 10.
Credit award.
For taxable years that begin on
14
or after January 1, 2026 and begin before January 1, 2036, an
15
eligible taxpayer may apply to the Department, in the form and
16
manner required by the Department by rule, for a credit
17
against the tax imposed by subsections (a) and (b) of Section
18
201 of the Illinois Income Tax Act. The credit under this Act
19
shall be in an amount equal to 50% of the qualified railroad
20
reconstruction or replacement expenditures incurred by the
21
eligible taxpayer during the taxable year, not to exceed, for
22
any eligible taxpayer in any taxable year, the product of: (i)
23
$3,500 or the amount per mile specified in subparagraph (A) of
24
paragraph (1) of subsection (b) of 26 U.S.C. 45G as of the
25
first day of the taxable year for which the credit is claimed

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1
if the number specified in that Section at that time is not
2
$3,500; multiplied by (ii) the number of miles of railroad
3
track that are owned or leased within the State by the eligible
4
taxpayer and for which the taxpayer made qualified railroad
5
reconstruction or replacement expenditures as of December 31
6
of the taxable year for which the credit under this Act is
7
claimed.
8

In no event shall a credit under this Section reduce the
9
taxpayer's liability under subsections (a) and (b) of Section
10
201 of the Illinois Income Tax Act to less than zero. If the
11
amount of the credit exceeds the tax liability for the year,
12
the excess may be carried forward and applied to the tax
13
liability of the 5 taxable years following the excess credit
14
year. The tax credit shall be applied to the earliest year for
15
which there is a tax liability. If there are credits for more
16
than one year that are available to offset a liability, the
17
earlier credit shall be applied first. The credit under this
18
Act is nonrefundable.
19

The Department may not award more than $5,000,000 in
20
credits under this Act in any calendar year.

21

Section 15.
Credit certificate.
The Department shall issue
22
a tax credit certificate to each eligible taxpayer who is
23
awarded tax credits under this Act. The eligible taxpayer
24
shall attach the tax credit certificate to the eligible
25
taxpayer's Illinois income tax return.

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Section 20.
Transferability; written agreement required.
2
An eligible taxpayer may transfer the credit awarded under
3
this Act by written agreement with an eligible transferee. The
4
amount of the transferred credit is limited to the unused,
5
remaining portion of the credit.
6

The eligible taxpayer and the eligible transferee must
7
jointly file a copy of the written transfer agreement with the
8
Department within 30 days of the transfer. The written
9
agreement must contain:
10

(1) the name, address, and taxpayer identification
11

number of the parties to the transfer;
12

(2) the taxable year in which the eligible taxpayer
13

incurred the qualified railroad reconstruction or
14

replacement expenditures;
15

(3) the amount of credit being transferred; and
16

(4) the taxable year or years for which the
17

transferred credit may be claimed by the eligible
18

transferee.
19

If approved, the Department must issue a credit
20
certificate to the eligible transferee within 30 days of the
21
joint filing of a copy of the written transfer agreement with
22
the Department.
23

In the case of an audit or assessment, the transferee is
24
liable for the repayment of credits claimed under this Section
25
in excess of the allowed amount.

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Section 25.
Pass-through entities.
For partners and
2
shareholders of Subchapter S corporations, the provisions of
3
Section 251 of the Illinois Income Tax Act shall apply with
4
respect to the credit under this Act.

5

Section 30.
Rules; powers of the Department.
The
6
Department of Transportation, in conjunction with the
7
Department of Revenue, has the power to carry out and
8
effectuate the purposes and provisions of this Act, including,
9
but not limited to, the power to:
10

(1) adopt rules deemed necessary and appropriate for
11

the implementation of this Act;
12

(2) establish forms for applications, notifications,
13

contracts, or any other agreements;
14

(3) assist taxpayers pursuant to the provisions of
15

this Act and cooperate with taxpayers that are parties to
16

agreements under this Act; and
17

(4) take whatever actions are necessary or appropriate
18

to protect the State's interest in the event of
19

bankruptcy, default, foreclosure, or noncompliance with
20

the terms and conditions of financial assistance or
21

participation required under this Act, including the power
22

to sell, dispose, lease, or rent, upon terms and
23

conditions determined by the Director to be appropriate,
24

real or personal property that the Department may receive

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as a result of these actions.

2

Section 35.
Terms and conditions.
Any documentary
3
materials or data made available or received from an applicant
4
by any agent or employee of the Department are confidential
5
and are not public records to the extent that the materials or
6
data consist of commercial or financial information regarding
7
the operation of or the production of the applicant or
8
recipient of any tax credit award under this Act.

9

Section 40.
Repeal.
This Act is repealed on January 1,
10
2037.

11

Section 900.
The Freedom of Information Act is amended by
12
changing Section 7.5 as follows:

13

(5 ILCS 140/7.5)
14

Sec. 7.5.
Statutory exemptions.
To the extent provided for
15
by the statutes referenced below, the following shall be
16
exempt from inspection and copying:
17

(a) All information determined to be confidential
18

under Section 4002 of the Technology Advancement and
19

Development Act.
20

(b) Library circulation and order records identifying
21

library users with specific materials under the Library
22

Records Confidentiality Act.

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(c) Applications, related documents, and medical
2

records received by the Experimental Organ Transplantation
3

Procedures Board and any and all documents or other
4

records prepared by the Experimental Organ Transplantation
5

Procedures Board or its staff relating to applications it
6

has received.
7

(d) Information and records held by the Department of
8

Public Health and its authorized representatives relating
9

to known or suspected cases of sexually transmitted
10

infection or any information the disclosure of which is
11

restricted under the Illinois Sexually Transmitted
12

Infection Control Act.
13

(e) Information the disclosure of which is exempted
14

under Section 30 of the Radon Industry Licensing Act.
15

(f) Firm performance evaluations under Section 55 of
16

the Architectural, Engineering, and Land Surveying
17

Qualifications Based Selection Act.
18

(g) Information the disclosure of which is restricted
19

and exempted under Section 50 of the Illinois Prepaid
20

Tuition Act.
21

(h) Information the disclosure of which is exempted
22

under the State Officials and Employees Ethics Act, and
23

records of any lawfully created State or local inspector
24

general's office that would be exempt if created or
25

obtained by an Executive Inspector General's office under
26

that Act.

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(i) Information contained in a local emergency energy
2

plan submitted to a municipality in accordance with a
3

local emergency energy plan ordinance that is adopted
4

under Section 11-21.5-5 of the Illinois Municipal Code.
5

(j) Information and data concerning the distribution
6

of surcharge moneys collected and remitted by carriers
7

under the Emergency Telephone System Act.
8

(k) Law enforcement officer identification information
9

or driver identification information compiled by a law
10

enforcement agency or the Department of Transportation
11

under Section 11-212 of the Illinois Vehicle Code.
12

(l) Records and information provided to a residential
13

health care facility resident sexual assault and death
14

review team or the Executive Council under the Abuse
15

Prevention Review Team Act.
16

(m) Information provided to the predatory lending
17

database created pursuant to Article 3 of the Residential
18

Real Property Disclosure Act, except to the extent
19

authorized under that Article.
20

(n) Defense budgets and petitions for certification of
21

compensation and expenses for court appointed trial
22

counsel as provided under Sections 10 and 15 of the
23

Capital Crimes Litigation Act (repealed). This subsection
24

(n) shall apply until the conclusion of the trial of the
25

case, even if the prosecution chooses not to pursue the
26

death penalty prior to trial or sentencing.

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(o) Information that is prohibited from being
2

disclosed under Section 4 of the Illinois Health and
3

Hazardous Substances Registry Act.
4

(p) Security portions of system safety program plans,
5

investigation reports, surveys, schedules, lists, data, or
6

information compiled, collected, or prepared by or for the
7

Department of Transportation under Sections 2705-300 and
8

2705-616 of the Department of Transportation Law of the
9

Civil Administrative Code of Illinois, the Regional
10

Transportation Authority under Section 2.11 of the
11

Regional Transportation Authority Act, or the St. Clair
12

County Transit District under the Bi-State Transit Safety
13

Act (repealed).
14

(q) Information prohibited from being disclosed by the
15

Personnel Record Review Act.
16

(r) Information prohibited from being disclosed by the
17

Illinois School Student Records Act.
18

(s) Information the disclosure of which is restricted
19

under Section 5-108 of the Public Utilities Act.
20

(t) (Blank).
21

(u) Records and information provided to an independent
22

team of experts under the Developmental Disability and
23

Mental Health Safety Act (also known as Brian's Law).
24

(v) Names and information of people who have applied
25

for or received Firearm Owner's Identification Cards under
26

the Firearm Owners Identification Card Act or applied for

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or received a concealed carry license under the Firearm
2

Concealed Carry Act, unless otherwise authorized by the
3

Firearm Concealed Carry Act; and databases under the
4

Firearm Concealed Carry Act, records of the Concealed
5

Carry Licensing Review Board under the Firearm Concealed
6

Carry Act, and law enforcement agency objections under the
7

Firearm Concealed Carry Act.
8

(v-5) Records of the Firearm Owner's Identification
9

Card Review Board that are exempted from disclosure under
10

Section 10 of the Firearm Owners Identification Card Act.
11

(w) Personally identifiable information which is
12

exempted from disclosure under subsection (g) of Section
13

19.1 of the Toll Highway Act.
14

(x) Information which is exempted from disclosure
15

under Section 5-1014.3 of the Counties Code or Section
16

8-11-21 of the Illinois Municipal Code.
17

(y) Confidential information under the Adult
18

Protective Services Act and its predecessor enabling
19

statute, the Elder Abuse and Neglect Act, including
20

information about the identity and administrative finding
21

against any caregiver of a verified and substantiated
22

decision of abuse, neglect, or financial exploitation of
23

an eligible adult maintained in the Registry established
24

under Section 7.5 of the Adult Protective Services Act.
25

(z) Records and information provided to a fatality
26

review team or the Illinois Fatality Review Team Advisory

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LRB104 07492 HLH 17535 b
1

Council under Section 15 of the Adult Protective Services
2

Act.
3

(aa) Information which is exempted from disclosure
4

under Section 2.37 of the Wildlife Code.
5

(bb) Information which is or was prohibited from
6

disclosure by the Juvenile Court Act of 1987.
7

(cc) Recordings made under the Law Enforcement
8

Officer-Worn Body Camera Act, except to the extent
9

authorized under that Act.
10

(dd) Information that is prohibited from being
11

disclosed under Section 45 of the Condominium and Common
12

Interest Community Ombudsperson Act.
13

(ee) Information that is exempted from disclosure
14

under Section 30.1 of the Pharmacy Practice Act.
15

(ff) Information that is exempted from disclosure
16

under the Revised Uniform Unclaimed Property Act.
17

(gg) Information that is prohibited from being
18

disclosed under Section 7-603.5 of the Illinois Vehicle
19

Code.
20

(hh) Records that are exempt from disclosure under
21

Section 1A-16.7 of the Election Code.
22

(ii) Information which is exempted from disclosure
23

under Section 2505-800 of the Department of Revenue Law of
24

the Civil Administrative Code of Illinois.
25

(jj) Information and reports that are required to be
26

submitted to the Department of Labor by registering day

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and temporary labor service agencies but are exempt from
2

disclosure under subsection (a-1) of Section 45 of the Day
3

and Temporary Labor Services Act.
4

(kk) Information prohibited from disclosure under the
5

Seizure and Forfeiture Reporting Act.
6

(ll) Information the disclosure of which is restricted
7

and exempted under Section 5-30.8 of the Illinois Public
8

Aid Code.
9

(mm) Records that are exempt from disclosure under
10

Section 4.2 of the Crime Victims Compensation Act.
11

(nn) Information that is exempt from disclosure under
12

Section 70 of the Higher Education Student Assistance Act.
13

(oo) Communications, notes, records, and reports
14

arising out of a peer support counseling session
15

prohibited from disclosure under the First Responders
16

Suicide Prevention Act.
17

(pp) Names and all identifying information relating to
18

an employee of an emergency services provider or law
19

enforcement agency under the First Responders Suicide
20

Prevention Act.
21

(qq) Information and records held by the Department of
22

Public Health and its authorized representatives collected
23

under the Reproductive Health Act.
24

(rr) Information that is exempt from disclosure under
25

the Cannabis Regulation and Tax Act.
26

(ss) Data reported by an employer to the Department of

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1

Human Rights pursuant to Section 2-108 of the Illinois
2

Human Rights Act.
3

(tt) Recordings made under the Children's Advocacy
4

Center Act, except to the extent authorized under that
5

Act.
6

(uu) Information that is exempt from disclosure under
7

Section 50 of the Sexual Assault Evidence Submission Act.
8

(vv) Information that is exempt from disclosure under
9

subsections (f) and (j) of Section 5-36 of the Illinois
10

Public Aid Code.
11

(ww) Information that is exempt from disclosure under
12

Section 16.8 of the State Treasurer Act.
13

(xx) Information that is exempt from disclosure or
14

information that shall not be made public under the
15

Illinois Insurance Code.
16

(yy) Information prohibited from being disclosed under
17

the Illinois Educational Labor Relations Act.
18

(zz) Information prohibited from being disclosed under
19

the Illinois Public Labor Relations Act.
20

(aaa) Information prohibited from being disclosed
21

under Section 1-167 of the Illinois Pension Code.
22

(bbb) Information that is prohibited from disclosure
23

by the Illinois Police Training Act and the Illinois State
24

Police Act.
25

(ccc) Records exempt from disclosure under Section
26

2605-304 of the Illinois State Police Law of the Civil

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1

Administrative Code of Illinois.
2

(ddd) Information prohibited from being disclosed
3

under Section 35 of the Address Confidentiality for
4

Victims of Domestic Violence, Sexual Assault, Human
5

Trafficking, or Stalking Act.
6

(eee) Information prohibited from being disclosed
7

under subsection (b) of Section 75 of the Domestic
8

Violence Fatality Review Act.
9

(fff) Images from cameras under the Expressway Camera
10

Act. This subsection (fff) is inoperative on and after
11

July 1, 2025.
12

(ggg) Information prohibited from disclosure under
13

paragraph (3) of subsection (a) of Section 14 of the Nurse
14

Agency Licensing Act.
15

(hhh) Information submitted to the Illinois State
16

Police in an affidavit or application for an assault
17

weapon endorsement, assault weapon attachment endorsement,
18

.50 caliber rifle endorsement, or .50 caliber cartridge
19

endorsement under the Firearm Owners Identification Card
20

Act.
21

(iii) Data exempt from disclosure under Section 50 of
22

the School Safety Drill Act.
23

(jjj) Information exempt from disclosure under Section
24

30 of the Insurance Data Security Law.
25

(kkk) Confidential business information prohibited
26

from disclosure under Section 45 of the Paint Stewardship

HB2832
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1

Act.
2

(lll) Data exempt from disclosure under Section
3

2-3.196 of the School Code.
4

(mmm) Information prohibited from being disclosed
5

under subsection (e) of Section 1-129 of the Illinois
6

Power Agency Act.
7

(nnn) Materials received by the Department of Commerce
8

and Economic Opportunity that are confidential under the
9

Music and Musicians Tax Credit and Jobs Act.
10

(ooo)

(nnn)
Data or information provided pursuant to
11

Section 20 of the Statewide Recycling Needs and Assessment
12

Act.
13

(ppp)

(nnn)
Information that is exempt from disclosure
14

under Section 28-11 of the Lawful Health Care Activity
15

Act.
16

(qqq)

(nnn)
Information that is exempt from disclosure
17

under Section 7-101 of the Illinois Human Rights Act.
18

(rrr)

(mmm)
Information prohibited from being
19

disclosed under Section 4-2 of the Uniform Money
20

Transmission Modernization Act.
21

(sss)

(nnn)
Information exempt from disclosure under
22

Section 40 of the Student-Athlete Endorsement Rights Act.
23

(ttt) Information that is confidential under Section
24

35 of the Short Line Railroad Infrastructure Modernization
25

Act.

26
(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;

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LRB104 07492 HLH 17535 b
1
102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
2
8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
3
102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
4
6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
5
eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
6
103-580, eff. 12-8-23; 103-592, eff. 6-7-24; 103-605, eff.
7
7-1-24; 103-636, eff. 7-1-24; 103-724, eff. 1-1-25; 103-786,
8
eff. 8-7-24; 103-859, eff. 8-9-24; 103-991, eff. 8-9-24;
9
103-1049, eff. 8-9-24; revised 11-26-24.)

10

Section 905.
The Illinois Income Tax Act is amended by
11
adding Section 246 as follows:

12

(35 ILCS 5/246 new)
13

Sec. 246.
Short Line Railroad Infrastructure Modernization
14
Act.
Taxpayers who are awarded a credit by the Department of
15
Transportation under the Short Line Railroad Infrastructure
16
Modernization Act may claim a credit against the tax imposed
17
by subsections (a) and (b) of Section 201 as provided in that
18
Act.

19

Section 999.
Effective date.
This Act takes effect upon
20
becoming law.

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