1. Short title This Act may be cited as the Freight Rail Assistance and Investment to Launch Coronavirus-era Activity and Recovery Act of 2020 or the Freight RAILCAR Act of 2020 . 2. Qualified freight railcar credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45U. Qualified freight railcar credit (a) General rule For purposes of section 38, the qualified freight railcar credit determined under this section for the taxable year is an amount equal to 50 percent of the sum of— (1) the qualifying replacement or modernization amount, (2) the qualifying scrap amount, and (3) the qualifying railcar facility and technology modernization amount. (b) Definitions In this section— (1) Qualifying replacement or modernization amount The term qualifying replacement or modernization amount means— (A) the basis of any newly built qualified freight railcar placed in service by the taxpayer during the taxable year, plus (B) the qualified freight railcar modernization expenditures of the taxpayer for the taxable year. (2) Qualifying scrap amount The term qualifying scrap amount means— (A) the depreciated value of a qualified freight railcar, as such value is defined and calculated in accordance with the Association of American Railroads Interchange Rules, less (B) the sum of scrap and part out net proceeds received by the taxpayer for such qualified freight railcar. (3) Qualifying railcar facility and technology modernization amount The term qualifying railcar facility equipment and technology modernization amount means total expenditures chargeable to capital account by a qualified railway supply company— (A) for re-equipping and enhancing the infrastructure of an existing qualified facility for the manufacture, repair, or modernization of railcars, which— (i) enables such facility, after such improvements, to modernize railcars such that they will meet the requirements of the Association of American Railroads