1. (a) Subject to subsection (b), if the department certifies a taxpayer under section 8 of this chapter, the taxpayer is entitled to a tax credit against the taxpayer's state tax liability equal to:

   1. (1) the taxpayer's:

      1. (A) qualified railroad expenditures; or
      2. (B) qualified new rail infrastructure expenditures; multiplied by
   2. (2) fifty percent (50%).

2. (b) The amount of a tax credit allowed under subsection (a) shall not exceed the following:

   1. (1) For qualified railroad expenditures, the product of:

      1. (A) the number of miles of Class II or Class III railroad track owned or leased by the taxpayer in Indiana at the close of the taxable year; multiplied by
      2. (B) three thousand five hundred dollars ($3,500).

   2. (2) For qualified new rail infrastructure expenditures, the lesser of:

      1. (A) fifty percent (50%) of the qualified new rail expenditures for each new rail served customer project completed by the taxpayer in the taxable year; or
      2. (B) five hundred thousand dollars ($500,000) per rail served customer project.

As added by P.L.173-2025, SEC.2.