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HB 190 Alabama House · 2026 Regular Session

Railroad Modernization Act of 2019, to increase the cap on income tax credits and extend the sunset date for five years through tax year 2032

HB 190 extends Alabama's Railroad Rehabilitation Tax Credit program through 2032, increasing the annual credit cap from $3.7 million to $4.5 million and raising the per-mile credit amount from $3,500 to $4,100. It directly affects railroad companies owning or leasing track in Alabama by allowing them to claim tax credits covering 50% of eligible rehabilitation costs, with credits transferable at 85% value. The program is funded through sales tax revenues in the Education Trust Fund, with specific annual limits on total credits issued across the extended period.
Issues: ✓ Budget & TaxesSupports Budget & TaxesBill increases tax credit caps for railroads (from $3.7M to $4.5M), expands eligible costs, and extends program through 2032, directly advancing tax relief policy.95% confidence ✗ EducationOpposes EducationFunds railroad tax credits via Education Trust Fund, diverting resources from education funding toward rail infrastructure.90% confidence ✓ TransportationSupports TransportationBill extends tax credits for railroad rehabilitation, directly funding rail infrastructure improvements under transportation policy.90% confidence
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2026
Committee Review
Feb 2026
House Passage
Feb 2026
Senate Passage
Governor
Introduced Jan 13, 2026 Last action Feb 12, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 5 edits · Feb 12, 2026
MODERATE
The bill was amended to extend the timeline for railroad tax credits and adjust the annual funding caps. The per-mile credit amount for the 2023-2027 period was reduced from $4,100 to $4,100 (no change in value, but the text was reorganized), while the 2028-2032 period credit amount was lowered from $5,000 to $4,100. The total reservation caps for future years were also reduced, and the sunset date for the program was extended.
Scope change
The bill's scope remains focused on the Railroad Modernization Act, but the financial parameters and duration of the tax credit program have been modified.
TIMELINE

The sunset date for the tax credit program was extended to December 31, 2032, allowing the program to continue for an additional five years.

FISCAL

The per-mile tax credit amount for the 2028-2032 period was reduced from $5,000 to $4,100.

The aggregate annual cap on tax credits for the 2028-2032 period was reduced from $5,500,000 to $4,500,000.

The total reservation cap for the period of August 1, 2027, through August 1, 2032, was set at $22,500,000.

TECHNICAL

The bill text was reorganized and renumbered, and a new account name was inserted in the middle of an existing paragraph.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
11
Key actions
5
Committee
3
Amendments
2
Feb 12, 2026
Upper · Passed
Pending Committee Action in Second House (Finance and Taxation Education)
upper
Feb 12, 2026
Lower · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 398
lower
Feb 12, 2026
Lower · Passed
Motion to Adopt - Adopted Roll Call 397
lower
Feb 12, 2026
Introduced
Ways and Means Education Engrossed Substitute Offered (Ways and Means Education)
lower
Jan 28, 2026
Lower · Passed
Reported Out of Committee House of Origin (Ways and Means Education)
lower
Jan 13, 2026
Lower · Passed
Pending Committee Action in House of Origin (Ways and Means Education)
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.