Kansas · Rail · KS-SLR-001

Short Line Railroad Tax Credit

Publication revised September 24, 2026. Sourcebook page 118.

Credit amount / calculation

Credit based on qualified short-line track maintenance expenditures.

Business fit and eligible activity

Potentially relevant where a forest-products business owns qualifying short-line track or receives an eligible assigned credit. Eligible rail or freight activity; ownership, carrier and shipping requirements matter.

Eligibility and practical use

This is a logistics credit. It matters when a mill owns, improves, or materially increases use of qualifying freight infrastructure.

Illustrative business benefit

Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.

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