Federal 45G Tax Credit

Support your railroad operations with earning and transferring federal 45G tax credits. Our expertise ensures your Class II and Class III infrastructure receives the investments supporting modern safety and effciency standards while fostering economic growth.

At Mickelson & Company, we recognize the essential role that railroads serve in enhancing economic growth and connectivity. Our work supports the advancement of the expansion and safety of your railroad infrastructure.

Federal 45G railroad tax credits provide crucial support for Class II and Class III railroads, which primarily operate in rural and lower-traffic density areas. These credits provide a financial incentive, offering up to 40% back on investments in track maintenance, including a unique provision allowing for the assignment of this tax credit to a qualifying shipper or vendor.

Mickelson & Company and our clients have developed long-standing reliable relationships with qualifying counter-parties to ensure the tax credit can result in cash for track investment regardless of the railroad’s tax position.

With a history of success, Mickelson & Company expertly guides railroad companies through the eligibility for and utilization of federal 45G tax credits.

TRACK TO SUCCESS

Our Nationwide Impact with the Federal 45G Tax Credit

Serving clients in 48 states.

Map of states that utilize Federal 45G tax credits.
Graphical squares showcased on federal 45g page.
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CASE STUDY

Driving the progress that fuels Watco’s rail innovations.

Watco is a leading transportation services company and is one of the largest private owners of short-line railroads in the United States, with 43 individual railroads. In 2023, Watco funded $76 million in track improvement work by assigning its 45G and state tax credits. Mickelson & Company has been advising Watco on these rail tax credit programs since 2005.

“Mickelson & Company is an important partner of Watco’s They have an outstanding team focused on delivering value. We recommend them without hesitation.”

RICK BADEN
EVP and CFO of Watco

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Explore Our Other Railroad Infrastructure Financing Solutions

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State Railroad Tax Credits

Enhance your railroad with state railroad tax credits. Our guidance helps modernize infrastructure while boosting regional economies.

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Industrial Development Tax Credits

Drive regional growth with up to a matching 50% industrial development tax credit in Oklahoma and Mississippi. We support maximizing business and infrastructural development.