State Railroad Tax Credits

Enhance your railroad infrastructure in one of eleven states with a railroad track tax credit program. We help ensure your Class II and Class III rail operations not only have the resources to meet modern standards but also support regional economic growth. Discover how we tailor our approach to benefit your specific state requirements.

At Mickelson & Company, we understand the significant funding requirements needed to support safe and reliable railroad operations. We are dedicated to helping you navigate state-specific incentives.

State railroad tax credits provide essential support for Class II and Class III railroads in 12 states. Tailored to encourage regional development, these credits offer financial incentives for maintaining and upgrading rail infrastructure, aligning with specific state requirements and goals.

We work closely with each client to maximize the benefits specific to each state’s regulations and funding opportunities. By facilitating tax credit assignments, we help our customers harness the full potential of state incentives.

State Railroad Tax Credits Passed and Prospective

Farmrail Railroad engine with sunset background

CASE STUDY

Maximizing the benefits of both the federal 45G tax credit and the Oklahoma state tax credit program.

Farmrail System, Inc. (“Farmrail”) is a short line railroad holding company headquartered in Clinton, OK with two active railroad subsidiaries. Farmrail’s customer base includes several of America’s best-known corporations, cooperative and independent grain elevators, and other firms meeting various farming, oilfield, and consumer needs. Since 2007, Farmrail has been participating in the federal and Oklahoma state tax credit programs and estimates $22 million in track improvements have been funded through the state program. Beginning in 2024, Farmrail and its customers will fund industrial expansion through the state industrial tax credit program. Mickelson & Company has advised Farmrail since 2007.

“Mickelson & Company has a team of tax credit experts that have assisted Farmrail with maximizing the benefits of both the federal 45G tax credit and the Oklahoma state tax credit program, which has allowed us to make significant investments in our track infrastructure across our network. The years of funding have allowed us to provide continued great service to our customers across Oklahoma and plan for the future.”

JUDY PETRY
Board Member and
Former President Farmrail

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Explore Our Other Railroad Infrastructure Financing Solutions

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Federal 45G Tax Credit

Enhance railroad operations with the federal 45G tax credit. Our guidance helps modernize and expand your infrastructure safely and efficiently.

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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.