The Freight RAILCAR Act of 2025 aims to encourage the replacement and modernization of outdated freight railcars by offering a tax credit. The main goal is to improve the efficiency and performance of freight transportation, which can lead to reduced emissions and better service in the rail industry. The key provision of this legislation is the introduction of a tax credit equal to 10 percent of the costs incurred by companies to modernize or replace their freight railcar fleets. However, there is a limit of 1,000 railcars per taxpayer that can qualify for this credit in a given year.