ASLRRA: Short line tax credit bill gains support in Congress

Congressional support for the passage of the Short Line Tax Credit Modernization (H.R. 516 and S. 1532) bill is growing, the American Short Line and Regional Railroad Association (ASLRRA) announced yesterday.

As of Dec. 11, the bill has 136 U.S. House cosponsors, 31 U.S. Senate cosponsors and support from committee leadership, ASLRRA officials said in a press release. 

H.R 516 and S. 1532, if approved, would modernize the existing Section 45G Railroad Track Maintenance Credit to reflect the increased cost of track maintenance due to inflation. Section 45G was introduced more than 20 years ago. It supports the upkeep of short line track and bridges and is considered an effective and successful policy, ASLRRA officials said. 

Currently, short lines receive 40 cents in tax credit for each dollar invested in upgrading track, up to a cap of $3,500 per mile. The legislation would increase the per mile cap to $6,100, index the cost to inflation going forward and allow expenditures on all current short-line track to be eligible for the tax credit, ASLRRA officials said.

On Jan. 16, U.S. Rep Mike Kelly (R-Pa.) introduced H.R. 516, which was referred it to the House Ways & Means Committee. U.S. Sen. Mike Crapo (R-Idaho) on April 30 introduced S. 1532, which was referred it to the Committee on Finance. No legislative action has been taken since, but the bills have garnered more bipartisan and committee leadership support. 

The House Ways & Means Subcommittee on Tax Chairman Kelly and Ranking Member Rep. Mike Thompson (D-Calif.) are lead sponsors of the bill. House Transportation and Infrastructure Subcommittee on Railroads, Pipelines and Hazardous Materials Chairman Rep. Daniel Webster (R-Fla.) and Ranking Member Rep. Dina Titus (D-Nev.) also are cosponsors.

More than half of each of the majority members of the House Ways & Means Committee and the House Transportation and Infrastructure Committee, which have jurisdiction over tax bills and broad transportation matters respectively, have also cosponsored the bill, ASLRRA officials said.

S. 1532 also has support among Senate leadership, including co-sponsorships from Senate Majority Leader  John Thune (R-S.D.), Conference Chair Sen. Tom Cotton (R-Ariz.), Policy Committee Chair Sen. Shelley More Capito (R-W.Va.), Senatorial Committee Chair Sen. Tim Scott (R-S.C.) and Steering and Policy Committee Chair Sen. Amy Klobuchar (D-Minn.).