U.S. Rep. Darin LaHood (R-IL) recently introduced bipartisan legislation to incentivize private investment in America’s freight railroads and support high-paying manufacturing jobs in Illinois.
“The COVID-19 pandemic is impacting infrastructure across the country, including the railway supply industry which is vital to the freight rail system in central and west-central Illinois,” said Rep. LaHood on Monday.
Illinois is a major hub of the nation’s rail network, with rail suppliers in the state generating more than $5 billion in annual economic impact and employing more than 9,400 employees.
In an effort to support freight railcar manufacturing, Rep. LaHood on Aug. 21 introduced the Freight Rail Assistance and Investment to Launch Coronavirus-era Activity and Recovery (Freight RAILCAR) Act, H.R. 8082, along with bill sponsor U.S. Rep. Brad Schneider (D-IL).
If enacted, the legislation would provide tax credits to encourage the modernization or replacement of outdated freight railcars. Tax credits would be provided to railcar leasing and manufacturing companies for the cost of replacing two existing railcars with a new fuel-efficient railcar or for refurbishing an existing railcar, according to information provided by Rep. LaHood’s office. In addition, the bill would offer a tax credit for capital expenditures that modernize equipment and technology to meet environmental standards.
“This bill will spur job growth in the freight rail manufacturing sector, creating opportunities to invest and innovate in the critical infrastructure of freight rail, and strengthen our transportation system as we work to recover from COVID-19,” Rep. LaHood said. “I am proud to join my colleague from Illinois, Rep. Schneider, in the effort that will support thousands of manufacturing jobs in the United States.”
Under H.R. 8082, railroads, shippers and freight rail leasing companies would benefit from the increased efficiency and capacity of new freight railcars, the congressman’s office said.
“We are grateful for the leadership of Representatives LaHood and Schneider for introducing the Freight RAILCAR Act,” said Erik Olson, vice president of the Rail Security Alliance. “The timing of this legislation could not be more important to our nation as we seek a strong recovery from the COVID-19 pandemic.”