Income tax; extend repealer on credit for certain railroad expenditures.

Railroad tax credit extended to 2029

Beginning July 1, 2026, the law keeps Mississippi’s railroad maintenance and new rail project income tax credit in place through January 1, 2029. Class II and Class III railroads in Mississippi can claim 50% of qualified costs, up to $5,000 per mile of in‑state track for maintenance and up to $1,000,000 per new rail‑served customer project. The credit cannot exceed the railroad’s Mississippi income tax for the year, and unused amounts carry forward for five years. Total credits statewide are capped at $8 million each year. Railroads may transfer unused credits to any taxpayer during that year or the next five years; the transfer must be filed with the Department of Revenue within 30 days.