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House · Vetoed · 2025-2026 Regular Session

HB 1070: Income tax; increase and extend a credit for expenditures on maintenance of railroad track owned or leased by Class III railroads

Last action May 12, 2026 · Veto V4

House Bill 1070 would raise Georgia's income tax credit for Class III railroads' track maintenance from $3,500 to $5,000 per mile and extend the program through 2027, though the bill has been vetoed.

Read the full bill text

These buttons carry the bill's own text, not the summaries below. Copy for LLM, View as markdown, and Send to AI use the Markdown version: the text as filed, then the summaries under a heading that names them as ours. View raw is the text alone.

The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.

In plain language

Georgia currently gives small, short-line railroads known as Class III railroads a tax credit worth 50 percent of what they spend maintaining their track, capped at $3,500 per mile of track they own or lease. That credit was set to expire for tax years ending after December 30, 2026. This bill would raise the per-mile cap to $5,000 and push the expiration date to December 31, 2027, extending the program by one more tax year. The bill also narrows what counts as a qualifying expense: money spent to also claim a federal tax credit, or money that came from a state or federal grant, would no longer count toward the state credit. It extends by one year the deadline for railroads to assign unused credits to another taxpayer, and pushes the program's automatic repeal date from January 1, 2027 to January 1, 2028. The Governor vetoed the bill as of May 12, 2026.

What the bill does

  • Raises the maximum tax credit a Class III railroad can claim from $3,500.00 to $5,000.00 per mile of railroad track it owns or leases in Georgia.
  • Extends the tax credit program by one year, so it now applies to tax years ending on or before December 31, 2027 instead of December 30, 2026.
  • Excludes from the credit any maintenance spending that is used to qualify for a federal tax credit or that was funded by a state or federal grant.
  • Pushes back by one year the deadline for railroads to transfer unused credits to another taxpayer, from January 1, 2027 to January 1, 2028.
  • Delays the program's automatic repeal date from January 1, 2027 to January 1, 2028.

Who it affects

Class III railroads (small, short-line freight railroads as classified by the federal Surface Transportation Board) operating in Georgia, and any other taxpayers who receive assigned but unused credits from those railroads. The Georgia Department of Revenue also administers and reports on the credit annually.

Why it matters

Short-line railroads that maintain their own track could recoup more of their maintenance costs through state taxes, potentially encouraging track upkeep for another year. The new exclusion for federally funded or grant-funded work means railroads cannot claim both a federal credit and this state credit, or a grant and this credit, for the same spending.

Key provisions

  • Section 1 amends O.C.G.A. § 48-7-40.34 to raise the per-mile credit cap from $3,500.00 to $5,000.00 for qualified railroad track maintenance expenditures.
  • Section 1 adds language excluding expenditures used to qualify for a federal tax credit or funded by a state or federal grant from counting as qualified expenditures.
  • Section 1 extends the tax years eligible for the credit through those ending on or before December 31, 2027, instead of December 30, 2026.
  • Section 1 extends the one-time window for assigning unused credits to another taxpayer through January 1, 2028, instead of January 1, 2027.
  • Section 1 moves the Code section's automatic repeal date from January 1, 2027 to January 1, 2028.
  • Section 1 keeps the existing annual reporting requirement to the Senate Finance Committee and the House Committee on Ways and Means, due each September 1.
  • Section 2 repeals any conflicting laws.

From the bill

“Such term shall not include expenditures used to qualify for a federal tax credit or expenditures funded by a state or federal grant.”

This new provision blocks railroads from double-dipping between the state credit and federal credits or grants.

“A Class III railroad shall be given a credit against the tax imposed under this article for a taxable year in the amount of 50 percent of the qualified railroad track maintenance expenditures paid or incurred by such Class III railroad during the taxable year”

This sets the core rule that the credit covers half of qualifying track maintenance spending.

Discussed in meetings (13)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

  1. House Ways & Means Committee, February 11, 2026

    From 0:12:34 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said HB 1070 would raise the short-line railroad track maintenance tax credit cap from $3,500 to $5,000 per maintained track mile and extend its expiration by five years. The sponsor said the credit was established in 2018 through the Rural Development Council and had not been updated since. No members asked questions. The committee held a voice vote, but the chair moved on without explicitly announcing the result.

  2. House Rules Committee, February 17, 2026

    From 0:23:02 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said the bill would extend the railroad track maintenance tax credit five years, through 2031, and raise its annual cap from $3,500 to $5,000 per track mile. The sponsor said the credit applies only to Class III short-line railroads and originated from a Rural Development Council recommendation. No questions or decision followed.

  3. House floor session, February 25, 2026 (legislative day 24)

    From 5:03:31 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1591

    Summary by Georgia Commons: The sponsor said HB 1070 would extend the railroad-track maintenance tax credit through 2031 and increase its per-mile cap from $3,500 to $5,000 to reflect higher maintenance costs. The sponsor said the credit helped Class III shortline railroads connect communities, industry and timber producers with larger railroads and ports. Asked how many shortlines operated in Georgia, the sponsor initially answered 23, then mentioned 26 without settling the difference. The House passed the bill 167 to 2.

  4. House Rules Committee, February 25, 2026

    From 0:22:58 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1581

    Summary by Georgia Commons: The chair called up HB 1070 under structured rules. Following a motion and second, the chair declared it added to the supplemental calendar without stated opposition. No provisions were discussed.

  5. Senate Finance Committee, March 11, 2026

    From 0:24:20 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said HB 1070 would extend the short-line railroad maintenance credit five years and raise its cap from $3,500 to $5,000 per track mile. The sponsor cited annual maintenance costs averaging $20,000 per mile and new construction costs around $3 million per mile. One member questioned the lack of an independent state evaluation; another urged requesting an audit. A Mickelson and Company representative said private investment rose from about $18 million before 2018 to more than $30 million in 2025. Another member questioned whether taxpayers or freight customers benefit directly, particularly when state-owned lines also receive appropriations. The representative cited reliable infrastructure, rural development and reduced road damage but could not compare freight rates. Questions about fiscal-note increases and active track mileage remained unresolved. An OmniTrax witness credited the program with helping rehabilitate an Albany rail yard. A Patriot Rail witness described service expansion and a new cement customer. A Genesee & Wyoming witness said the credit and a federal grant helped preserve and upgrade Georgia Central Railway. Asked about credits for state-leased lines, that witness said improvements remain state assets. The chair deferred further discussion to the next meeting without a vote.

  6. Senate Rules Committee, March 23, 2026

    From 0:17:13 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said HB 1070 would extend the railroad track maintenance tax credit by one year and increase the annual credit cap from $3,500 to $5,000 per track mile. No questions or vote followed.

  7. Senate floor session, March 27, 2026 (legislative day 38)

    From 1:34:36 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)

    Summary by Georgia Commons: The Senate voted 31-18 to protect HB 1070 and three other bills from floor amendments. Later, the sponsor said the bill would increase the railroad track maintenance tax credit from $3,500 to $5,000 per track mile and extend its expiration by one year. The sponsor said Georgia has 26 short-line railroads, mostly in middle and south Georgia. Asked why the credit was needed, the sponsor said rail investment supports freight movement from ports, economic development and fewer trucks on roads. A second member supported the rural development benefits and asked about faster service. The sponsor said investment could make service faster, safer and more dependable. The Senate adopted the committee substitute and passed the bill 44-3.

  8. House floor session, March 31, 2026 (legislative day 39, part 2)

    From 2:58:23 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub)

    Summary by Georgia Commons: The presenter said the Senate shortened the extension of the short-line railroad track maintenance tax credit from five years to one year. The presenter also said the Senate clarified that spending financed by state or federal grants could not qualify for the credit. No members asked questions. The House agreed to the Senate substitute, 139 to 26.

Status timeline

  1. 2026-05-12Veto V4
  2. 2026-05-12House Date Vetoed by Governor (House)
  3. 2026-04-07House Sent to Governor (House)
  4. 2026-03-31House Agreed Senate Amend or Sub (House)
  5. 2026-03-27Senate Passed/Adopted By Substitute (Senate)
  6. 2026-03-27Senate Third Read (Senate)
  7. 2026-03-27Senate Taken from Table (Senate)
  8. 2026-03-27Senate Tabled (Senate)
Show full history (18 actions)
  1. 2026-03-27Senate Engrossed (Senate)
  2. 2026-03-20Senate Read Second Time (Senate)
  3. 2026-03-19Senate Committee Favorably Reported By Substitute (Senate)
  4. 2026-02-26Senate Read and Referred (Senate)
  5. 2026-02-25House Passed/Adopted (House)
  6. 2026-02-25House Third Readers (House)
  7. 2026-02-11House Committee Favorably Reported (House)
  8. 2026-02-02House Second Readers (House)
  9. 2026-01-29House First Readers (House)
  10. 2026-01-28House Hopper (House)

Sponsors

  • Leesa Hagan (R, HD-156)Primary sponsor
  • Rick Jasperse (R, HD-11)
  • Steve Tarvin (R, HD-2)
  • Gerald Greene (R, HD-154)
  • Brent Cox (R, HD-28)
  • Steve Gooch (R, SD-51)

Votes

  1. PassedHouse voteFebruary 25, 2026

    167 yea, 2 nay (2 not voting, 6 excused)

    PASSAGE: House Vote #564

  2. PassedSenate voteMarch 27, 2026

    31 yea, 18 nay (4 not voting, 1 excused)

    MOTION TO ENGROSS: HB 229, HB 583, HB 960, HB 1070: Senate Vote #826

  3. PassedSenate voteMarch 27, 2026

    26 yea, 22 nay (3 not voting, 3 excused)

    MOTION TO TABLE REMAINING LEGISLATION ON THE RULES CALENDAR: Senate Vote #835

  4. PassedSenate voteMarch 27, 2026

    44 yea, 3 nay (2 not voting, 5 excused)

    PASSAGE BY SUBSTITUTE: Senate Vote #868

  5. PassedHouse voteMarch 31, 2026

    139 yea, 26 nay (3 not voting, 8 excused)

    Agree to Senate Substitute: House Vote #810

Topics

  • income tax credits
  • railroads
  • transportation infrastructure
  • state tax policy

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Machine-readable https://georgiacommons.org/bills/2025-2026/hb1070.md · https://georgiacommons.org/bills/index.md · MCP https://mcp.georgiacommons.org/mcp

HB1070: Income tax; increase and extend a credit for expenditures on maintenance of railroad track owned or leased by Class III railroads | Georgia Commons