ASLRRA boasts Senate progress on 45G

Written by Jenifer Nunez, assistant editor

The Senate Finance Committee met to debate legislation put forward by Sen. Orrin Hatch (R-UT) to extend expiring tax credits, including the Section 45G railroad track maintenance credit.

 

The 45G, or Short Line Tax Rehabilitation credit, has been publically endorsed by 38 Senators who have cosponsored S. 637, a bill by Sen. Mike Crapo (R-ID) and Sen. Ron Wyden (D-OR) to extend the credit.

“The 45G tax credit is absolutely critical to our industry, allowing for continuous investment in the upgrading and maintenance of track, which is a private sector investment in America’s future economic success. A safe, well-maintained rail infrastructure is the basis of a strong safety commitment. The 45G tax credit allows our members to invest their own capital at a pace that meets the needs of their customers, many of whom would otherwise be cut off from the national freight network and allows shortlines to be a competitive transportation solution,” said Linda Darr, president of the American Short Line and Regional Railroad Association (ASLRRA).

Ten new Senators have joined this effort in the past three weeks.

“The employees of shortline railroads, railroad customers, railroad contractors and suppliers have been reaching out to their elected officials for months and have built Congressional support at a record pace in 2015,” said ASLRRA 45G Subcommittee Chairman Bob Ledoux, of the Florida East Coast Railway. “Every senator and representative that steps up to support small railroads does so because they have heard directly and persuasively from their constituents.”

“All of the shortline railroads in Oregon are very appreciative of Sen. Wyden’s and Sen. Crapo’s efforts to enhance our ability to make the infrastructure investments necessary to safely and efficiently serve rail customers not only across Oregon, but the entire nation. This credit gives shortline railroads the ability to reinvest more of their own funds back into their tracks and bridges, supporting the thousands of communities and customers across the nation dependent upon short line rail freight services,” said Jerry Vest, assistant vice president of the Central Oregon & Pacific Railroad and the Portland & Western Railroad.

In addition, Sen. Crapo proposed an amendment to make the 45G credit permanent, and ensure stable and long-term tax relief and infrastructure investment for small railroads. The permanency of a tax credit would enable small railroads to plan more effectively and efficiently for capital improvements. This amendment, like all other amendments dealing with the permanency of credits, was ruled out of order for today’s debate.

The House version of the bill, H.R. 721, currently has 222 co-sponsors, led by Reps. Lynn Jenkins (R-KS) and Earl Blumenauer (D-OR).

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