1. Short title This Act may be cited as the Freight Rail Assistance and Investment to Launch Coronavirus-era Activity and Recovery Act of 2023 or the Freight RAILCAR Act of 2023 . 2. Freight railcar modernization 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: 45BB. Freight railcar modernization credit (a) In general For purposes of section 38, the freight railcar modernization credit determined under this section for the taxable year is an amount equal to 10 percent of the taxpayer’s freight railcar fleet modernization expenses. (b) Limitation No more than 2,000 qualified freight railcars per taxpayer may be taken into account for purposes of determining the credit under subsection (a) with respect to a taxable year. (c) Definitions For purposes of this section— (1) Freight railcar fleet modernization expenses The term freight railcar fleet modernization expenses means the sum of the qualifying railcar replacement and modernization amount. (2) Qualifying railcar replacement and modernization amount The term qualifying railcar replacement and modernization amount means— (A) the basis of any qualified newly built replacement railcar placed in service by the taxpayer during the taxable year, plus (B) the qualified railcar modernization expenditures of the taxpayer for the taxable year. (3) Qualified newly built replacement railcar The term qualified newly built replacement railcar means a qualified freight railcar which— (A) is built after the date of the enactment of this section, (B) is ordered or originally placed in service before the date that is three years after the date of the enactment of this section, and (C) replaces two freight railcars owned by the taxpayer that— (i) were in service within the 48 months preceding the beginning of the taxable year, and (ii) which were both scrapped and permanently removed from the AAR Umler System master file during such taxable year. (4) Qualified