Rep. Lynn Jenkins (R-KS), along with fellow U.S. lawmakers Reps. Earl Blumenauer (D-OR), Rodney Davis (R-IL) and Dan Lipinski (D-IL), introduced the Short Line Railroad Rehabilitation and Investment Act of 2015 on Wednesday.
The bipartisan legislation would extend the maintenance tax credit for short-line railroads.
“The Short Line Rail Road Tax Credit helps maximize private infrastructure investment, and allows these railroads to provide their customers with more customized and competitively priced service,” Jenkins said. “This bipartisan proposal ensures the continuation of the vital link between our communities and the national freight railroad network.”
Short-line railroads operate on tracks abandoned by larger, national railroads that often have been neglected for years. Most short-line railroads do not generate enough revenue to maintain the tracks without the tax credit.
“I am proud to support our nation’s short-line railroads,” Blumenauer said. “These successful small companies supply an invaluable service to our nation’s rail backbone. By leveraging this tax credit to redevelop track and track spurs critical to the first and last mile of connectivity to factories, grain elevators, power plants, refineries, mines and other facilities, these companies provide the key transportation link for rail customers employing more than 1 million Americans. I look forward to working with my colleagues to extend this successful program.”
Also known as the 45G Tax Credit, the credit originally expired at the end of 2014.
“The Short Line Railroad Rehabilitation Tax Credit has been critical in boosting private investment in rail infrastructure,” Lipinski said. “Let’s continue to put people to work and improve American transportation by enhancing and extending the Short Line tax credit.”