Short-line tax credit advances in House, picks up 50th cosponsor in Senate

Legislation that would extend the 45G short-line maintenance tax credit was favorably voted out of the U.S. House Ways and Means Committee yesterday, the American Short Line and Regional Railroad Association reported.

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R. 3301) would provide certainty for a number of tax credits, including the short-line credit, through 2020.

Since 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.

Meanwhile, a stand-alone bill in the Senate (S. 203) — which would would make the short-line tax credit permanent — yesterday picked up its 50th cosponsor, ASLRRA officials said. The 50 cosponsors — in addition to lead sponsor U.S. Sen. Mike Crapo (R-Idaho) — means that a majority of the Senate and House have officially gone on record in support of making the short-line tax credit permanent, ASLRRA officials said.

Both bills would enable short lines and regionals to plan complex and long-term infrastructure projects, said ASLRRA President Chuck Baker.

"Providing certainty for business investment is good public policy, allowing railroads to invest to improve safety, protect the environment, and provide efficient transportation for thousands of agricultural, energy, and manufacturing customers in small town and rural America," Baker said in a press release.