ALtax_creditpct_of_investmentrefundable

Alabama Railroad Modernization Act Credit

RAIL · Alabama

Summary

Refundable tax credit for Class II and Class III railroads on qualified reconstruction or replacement expenditures. Annual statewide cap: $3.7 million; aggregate lifetime cap: $11.1 million. Effective for tax years beginning on or after December 31, 2019.

Benefit

Percentage: —
Flat: —
Duration: —
Max annual: $3,700,000 (statewide)
Max total: $11,100,000 (statewide)
Carryforward: —

Program metadata

Distribution: taxpayer_earned
Claimant subject: business
Refund/transfer election: refundable_only
Program family: —
Effective: 2019-12-31
Sunset: —
Application deadline: —
Transfer discount: —

Hard requirements (1)

industry_keywordEligible only for railroads classified as Class II or Class III

Preference / tiering rules (0)

None.

NAICS industries (1)

4821 Rail Transportation

Geo zones (0)

Statewide / none specified.

Tags (4)

requires_precertification: true
approving_agency: Alabama Department of Commerce
statewide_annual_cap: 3700000
lifetime_aggregate_cap: 11100000

Tax bases

corporate_income_taxprimary

Source

https://www.revenue.alabama.gov/tax-incentives/income-tax-incentives/

Sections 37-11C-1 through 37-11C-6, Code of Ala. 1975

Last verified: 2026-04-12

Taxpayers must obtain precertification from AL Dept. of Commerce prior to claiming the credit. Eligible for Class II or Class III railroads only.