Illinois HB4703: Railroad Modernization Act and Income Tax Credit

LegiScan Illinois

Published January 29th, 2026

Detected March 29th, 2026

Summary

Illinois House Bill 4703, introduced on January 29, 2026, proposes the Short Line Railroad Modernization Act. The bill aims to create an income tax credit for qualified railroad expenditures and new rail infrastructure investments, with limitations on credit amounts. Conforming changes to the Illinois Income Tax Act are also included.

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What changed

Illinois House Bill 4703, introduced on January 29, 2026, proposes the creation of the Short Line Railroad Modernization Act. This legislation aims to incentivize railroad infrastructure improvements by establishing an income tax credit for taxpayers who incur qualified railroad expenditures or qualified new rail infrastructure expenditures. The bill outlines the credit amount and sets limitations on its award. It also includes conforming amendments to the Illinois Income Tax Act.

Companies involved in railroad operations within Illinois should review the bill's provisions to understand the eligibility criteria for the income tax credit, the calculation of qualified expenditures, and any limitations on the credit amount. As the bill is in its draft stage and has been referred to the House Rules Committee, stakeholders should monitor its progress through the legislative process. The bill states it is effective immediately upon passage, but specific compliance actions will depend on its enactment.

What to do next

Review Illinois HB4703 for eligibility criteria related to railroad expenditures and new infrastructure investments.
Monitor the bill's progress through the Illinois General Assembly.
Consult with tax advisors regarding potential income tax credit benefits and limitations.

Source document (simplified)

IL HB4703 | 2025-2026 | 104th General Assembly

Illinois House Bill 4703

IL State Legislature page for HB4703
- Summary
- Sponsors
- Texts
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Status

Sponsorship: Bipartisan Bill
Status: Introduced on January 29 2026 - 25% progression
Action: 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee
Pending: House Rules Committee
Text: Latest bill text (Introduced) [HTML]

Summary

Creates the Short Line Railroad Modernization Act. Creates an income tax credit for taxpayers that incur qualified railroad expenditures or qualified new rail infrastructure expenditures. Sets forth the amount of the credit and limitations on the amount of the credit that may be awarded. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
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Title

RAILROAD MOD CREDIT

History

| Date | Chamber | Action |
| --- | --- | --- |
| 2026-03-27 | House | Rule 19(a) / Re-referred to Rules Committee |
| 2026-03-26 | House | Added Co-Sponsor Rep. William E Hauter |
| 2026-02-26 | House | To Tax Policy: Other Taxes Subcommittee |
| 2026-02-17 | House | Assigned to Revenue & Finance Committee |
| 2026-02-06 | House | Referred to Rules Committee |
| 2026-02-06 | House | First Reading |
| 2026-01-29 | House | Filed with the Clerk by Rep. Dave Vella |

Code Citations

| Chapter | Article | Section | Citation Type | Statute Text |
| --- | --- | --- | --- | --- |
| 35 | 5 | 246 | New Code | See Bill Text |

Illinois State Sources

| Type | Source |
| --- | --- |
| Summary | https://www.ilga.gov/Legislation/BillStatus?DocNum=4703&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| Text | https://www.ilga.gov/Legislation/BillStatus/FullText?LegDocId=207069&DocName=10400HB4703&DocNum=4703&DocTypeID=HB&LegID=165722&GAID=18&SessionID=114&SpecSess=&Session= |

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