A bipartisan bill led by U.S. Rep. Darin LaHood (R-IL) would provide a federal tax credit to encourage the replacement or modernization of inefficient, outdated freight railcars.
Rep. LaHood on Feb. 6 sponsored the Freight RAILCAR Act, H.R. 838, with lead original cosponsor U.S. Rep. Brad Schneider (D-IL) and 28 other original cosponsors to incentivize investment in safer freight railcar manufacturing in the United States.
“Illinois’ rail network is a vital economic driver that impacts agriculture, manufacturing, and our local communities,” Rep. LaHood said on Monday. “The Freight RAILCAR Act will spur job growth in the freight rail manufacturing sector, creating opportunities to invest in critical freight rail infrastructure, and strengthen our transportation system.”
If enacted, H.R. 838 would provide a time-limited tax credit to purchase new railcars or update existing ones to help offset the costs associated with taking outdated railcars out of service, according to a bill summary provided by Rep. LaHood’s office.
The replacements would help improve fuel efficiency and modernize the nation’s freight rail industry while also providing for the recycling of old metal, the summary says.
“I am proud to reintroduce this legislation with my colleague, Rep. LaHood, to protect jobs in the rail sector and help build a more fuel-efficient and safer rail fleet,” said Rep. Schneider. “As we’ve seen over the last three years, it is critical we strengthen every part of our supply chain — including all components of rail infrastructure — to be more resilient, especially as our economy emerges from the pandemic.”
Among the original cosponsors who also signed on to the bill were U.S. Reps. Don Bacon (R-NE), Kay Granger (R-TX), Sam Graves (R-MO), Tony Gonzales (R-TX), and Michael McCaul (R-TX).