COtax_creditpct_of_investment

Freight Rail Tax Credit

CO-FREIGHT-RAIL · Colorado

Summary

Colorado state income tax credit equal to up to 75% of Qualified Expenditures incurred to use freight rail transportation along Union Pacific's Craig Branch Line through the Yampa Valley (Moffat, Rio Blanco, and Routt counties — coal transition communities). Eligible expenses include railroad fees, transloading costs, and capital costs associated with rail infrastructure. Program reserves up to $5 million in tax credits per year, starting in 2025 and ending before January 1, 2036. Approved businesses can use these tax credits for income tax years 2026 through 2038. Administered by OEDIT in consultation with the Office of Just Transition (OJT) and Colorado Department of Transportation (CDOT).

Benefit

Percentage
75% of investment
Flat
Duration
Max annual
$5,000,000 (taxpayer)
Max total
(taxpayer)
Carryforward

Program metadata

Distribution
allocated
Claimant subject
business
Refund/transfer election
none
Program family
Effective
Sunset
2038-12-31
Application deadline
Transfer discount

Hard requirements (1)

  • local_approval_requiredOEDIT must approve the project. Reservation + issuance steps required.

Preference / tiering rules (0)

None.

NAICS industries (0)

Any.

Geo zones (1)

  • rural · UP Craig Branch Line / Yampa Valley

Tags (0)

None.

Source

https://oedit.colorado.gov/programs-and-funding/tax-credits/freight-rail-tax-credit
SB24-190; § 39-22-563, C.R.S.
Last verified: 2026-04-30
GEOGRAPHICALLY RESTRICTED to UP Craig Branch Line (Moffat / Rio Blanco / Routt counties). Coal-transition-community focus, intersects with CO-RJS Tier 1 just-transition list. Source page 403'd from this fetch; details synthesized from SB24-190 + WebSearch metadata + governor's press release. Refundability not stated explicitly in surfaced sources — set FALSE pending direct page confirmation.