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President Obama recently announced that the Administration and Congressional Republicans had struck a “framework” deal that could extend several expired tax provisions, including the Section 45G short-line tax credit, according to the American Short Line and Regional Railroad Association (ASLRRA).

The Section 45G tax credit expired at 2009’s end and bipartisan majorities in both the House and Senate earlier this year called for an extension, ASLRRA officials said in an item included in the association’s latest newsletter.

“While nothing is certain until passed by Congress and signed by the President, the current deal … would extend individual tax cuts passed early in the Bush Administration as well as business tax provisions like 45G,” they said. “The 45G tax credit would be extended to cover the 2010 and 2011 tax years under this framework.”

However, the proposal likely will face “significant” opposition by some Democrats in the House and Senate, ASLRRA officials said. So, they’re urging association members to contact their congressmen to voice support for the passage of an extension.

Initially enacted in January 2005, the tax credit enables regionals and short lines to claim a tax credit of 50 cents for every dollar spent on infrastructure improvements, up to a cap of $3,500 per mile of owned or leased track.