Providing incentives to improve freight railroad infrastructure.

HB 1058 creates tax credits for eligible railroads to fund infrastructure improvements. It directly affects small regional railroads (class II/III), public entities like ports/cities, and industrial property owners with rail spurs in Washington. The bill provides a 50% tax credit on qualified expenses for maintenance, new rail development, or modernization projects (e.g., track upgrades, bridges, safety equipment), with annual limits of $500,000 per taxpayer and a total $8 million statewide cap. Credits can be carried forward for up to five years or transferred to other eligible taxpayers.