# 119-s-2758: Freight RAILCAR Act of 2025

119-s-2758, Freight RAILCAR Act of 2025, is a 119th Congress bill sponsored by Sen. Banks, Jim [R-IN] (R-IN); status introduced; PRIA reads it as touching household money (as of 2026-05-15).

- Canonical: https://policyrisk.com/legislation/119-s-2758
- As of: 2026-05-15
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2758
- Congress: 119
- Title: Freight RAILCAR Act of 2025
- Status: introduced
- Introduced: 2025-09-10
- Sponsor: Sen. Banks, Jim [R-IN] (R-IN)
- Cosponsors: 2
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-05-15

## Summary

**A 10% freight railcar modernization tax credit would encourage railroads to replace and upgrade cars.** The credit would equal 10 percent of qualifying replacement and modernization costs, be claimed as a business credit, and apply to property placed in service during a three-year window with a hard per-taxpayer cap of 1,000 qualified railcars. - Rail operators and fleet owners would get a tax incentive to speed fleet turnover by replacing or modernizing cars. Newly built replacement railcars must replace two scrapped cars to qualify, which targets removal of older equipment. - Manufacturers could gain more orders because qualified freight railcars must be built in a "qualified facility" that is not owned or leased by entities ineligible for federal rail contracts under 49 U.S.C. 5323(u). - The credit is treated under existing business-credit rules and includes limits to prevent double benefits, reduces the railcar tax basis by the credit amount, and adds sale-leaseback and syndication rules to govern complex deals.

## Cosponsors (2)

- Sen. Coons, Christopher A. [D-DE] (D-DE), 2025-09-10T00:00:00.000Z
- Sen. Merkley, Jeff [D-OR] (D-OR), 2026-05-13T00:00:00.000Z

## Provisions PRIA read

- New freight railcar tax credit: mixed, high. This bill would create a 10% business tax credit for qualifying freight railcar purchases and modernizations. You could count at most 1,000 qualified railcars per taxpayer each year. If you claim the credit, the railcar's tax basis must be reduced by the credit amount, which lowers future depreciat…

## Related bills

- 119-s-1552: Living Donor Protection Act of 2025
- 119-s-410: Love Lives On Act of 2025
- 119-s-237: Honoring Our Fallen Heroes Act of 2025
- 119-s-199: A bill to amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the…
- 119-s-4429: Connected Vehicle Security Act of 2026
- 119-s-2858: SHINE for Autumn Act of 2025

## Sources
- [119-s-2758 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2758)

## Related
- [119-s-1552: Living Donor Protection Act of 2025](https://policyrisk.com/legislation/119-s-1552)
- [119-s-410: Love Lives On Act of 2025](https://policyrisk.com/legislation/119-s-410)
- [119-s-237: Honoring Our Fallen Heroes Act of 2025](https://policyrisk.com/legislation/119-s-237)
- [119-s-199: A bill to amend the Internal Revenue Code of 1986 to provide special rules for…](https://policyrisk.com/legislation/119-s-199)
- [119-s-4429: Connected Vehicle Security Act of 2026](https://policyrisk.com/legislation/119-s-4429)
- [119-s-2858: SHINE for Autumn Act of 2025](https://policyrisk.com/legislation/119-s-2858)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2758 (as of 2026-05-15).