ASLRRA: Short-line tax credit bill crosses threshold for House support

Support for legislation that would make the short-line tax credit permanent reached another milestone in the U.S. House, where the number of co-sponsors on the bill has rolled past two-thirds of House membership, American Short Line and Regional Railroads Association (ASLRRA) officials announced yesterday.

The sponsor and co-sponsor count reached 294 House members for the Building Rail Access for Customers and Economy Act (BRACE), or H.R. 510, which would make the 45G tax credit permanent.

Starting in 2005, the short-line maintenance tax incentive provided a credit of 50 cents for each dollar short lines and regionals spent on track and bridge improvements, capped at $3,500 per mile. The credit has been extended over the years and last expired Dec. 31, 2017. Short lines have relied on the credit to increase their investment in their rail infrastructure, according to ASLRRA, which has long championed the measure.

"We now call on congressional leadership to make this a reality for the thousands of agricultural, energy and manufacturing customers and communities served by more than 600 short line railroads," said ASLRRA Chuck Baker in a press release. "A timely renewal of the credit this fall is crucial to continue the benefits of this infrastructure investment and avoid dire consequences for the short-line railroad industry."