Senators introduce bill to update short-line tax credit

U.S. Sens. Mike Crapo (R-Idaho) and Ron Wyden (D-Ore.) this week introduced S. 1532, legislation that would update the Short Line Railroad Maintenance Tax Credit.

The bill would amend Internal Revenue Code of 1986 to modify the railroad track maintenance credit, which has helped drive more than $8 billion in private investment in short-line rail infrastructure since the credit was introduced in 2005, according to the American Short Line and Regional Railroad Association (ASLRRA).

The Senate bill is a companion to H.R. 516 introduced in January by U.S. Reps. Mike Kelly (D-Pa.) and Mike Thompson (D-Calif.). The bills would "modernize" the tax credit by adjusting the cap per mile to today’s costs, by including all short line rail mileage, and by indexing the cap to inflation moving forward, ASLRRA officials said.

“This 45G tax credit is widely considered an effective and successful public policy. It has been responsible for significant private investment in infrastructure, but outdated caps and limitations are threatening to erode its potency," said ASLRRA President Chuck Baker.

Updating the 45G tax credit would "serve the rail industry, shippers and the economies of small towns across the country for years to come," he added.