U.S. Rep. Lynn Jenkins (R-KS) recently introduced legislation that aims to improve railroad infrastructure by making the short line track maintenance tax credit permanent.
The Building Rail Access for Customers and the Economy (BRACE) Act, H.R. 4626, seeks to bolster private investments in the country’s railroad infrastructure by permanently extending the short line track maintenance tax credit.
“Private railroad infrastructure investment is essential to providing the consumers with a competitively priced service,” Jenkins said. “The Short Line Rail Road Tax has proven invaluable to helping maximize this private investment. Until now, this tax credit has been a temporary measure since 2005, leaving companies without the certainty they need to plan ahead. This bipartisan proposal to make the credit permanent will help our communities have access to the important goods they need. It’s a common sense move that is good for the economy and good for folks in Kansas.”
Under the short line track maintenance tax credit, short line and regional railroad operators receive a 50 percent tax credit for track maintenance expenses of up to $3,500 per mile.
The tax credit has been scheduled to expire a number of times since it was instituted in 2005. Last year, Jenkins co-sponsored the Short Line Railroad Rehabilitation and Investment Act of 2015, H.R. 721, which extended the tax credit for another year.
“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 at the time. “This bipartisan proposal ensures the continuation of the vital link between our communities and the national freight railroad network.”