Congress approves extension of 45G tax credit for 2014

Written by Jenifer Nunez, assistant editor
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ASLRRA

Congress approved the extension of the Section 45G shortline tax credit to cover all of the 2014 tax year.

This bill was critical for hundreds of small freight railroads, as well as railroad customers, contractors and suppliers.

The Joint Committee on Taxation estimates that Section 45G incentivizes between $300 million and $400 million in shortline capital and maintenance expenditures each year.
This marks the culmination of two years of hard work to extend the credit. Section 45G last expired on Dec. 31, 2013.

“I am pleased that Congress has acted today to end uncertainty about the shortline tax credit,” said American Short Line and Regional Railroad Association (ASLRRA) President Linda Bauer Darr. “When 45G is in effect, it greatly increases investment that improves important railroad infrastructure. American taxpayers earn a tremendous return on this investment by making more than 10,000 small railroad customers more competitive, preserving connections to rural America, keeping trucks off of overcrowded highways, creating jobs, preserving the environment and enhancing the safety of rail operations.”

“By approving the House ‘extenders’ bill, the Senate provided a tremendous step forward for the shortline and regional freight railroad industry, in our collective efforts to upgrade our lines,” said ASLRRA Legislative Policy Committee (LPC) Chairman Jerry Vest of Genesee & Wyoming.

 

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