Senate bill to extend shortline tax credit introduced

Written by Jenifer Nunez, assistant editor

U.S. Sens. Ron Wyden (D-Ore.) and Mike Crapo (R-Idaho) introduced the Short Line Railroad Rehabilitation and Investment Act of 2015, which would extend the shortline railroad track maintenance tax credit that expired in 2014.

 

“Small railroads provide a critical service to communities and businesses across Oregon and this bill means continued investment in important infrastructure,” said Wyden, the top democrat on the Senate Finance Committee. “The shortline rail credit empowers railroads to make investments in the first and last mile of what is often a transcontinental journey for goods destined for factories, grain elevators, mills and other vital parts of the economy in Oregon and across the country.”

The shortline railroad track maintenance credit provides shortline and regional railroads a 50 percent tax credit for railroad track maintenance expenses, up to $3,500 per mile of track owned or leased by the railroad. This credit has been crucial in helping to rehabilitate shortline and regional railroads around the country, including the turn-around of the Port of Coos Bay Rail Link in Oregon. These shortline railroads serve as the lifeline to many Oregon manufacturers, ensuring that their products can get to market in an efficient and cost-effective manner. This provision expired at the end of 2014 as part of the tax extenders package.

“We in Coos Bay know firsthand just how essential the credit has been for our local economy and the hard-working people in our community who rely on the jobs provided by a well-maintained short line,” said David Koch, chief executive officer of the Port of Coos Bay. “We strongly support Sen. Wyden’s work on this vital issue and look forward to extending this much-needed lifeline for small railroads here as well as throughout Oregon and the nation.”

Wyden and Crapo were joined on the bill by Sens. Jerry Moran (R-Kan.), Johnny Isakson (R-Ga.), John Boozman (R-Ark.), Bob Casey (D-Penn.), Charles Schumer (D-N.Y.) and Richard Blumenthal (D-Conn.)

In early February, the Short Line Railroad Rehabilitation and Investment Act of 2015, H.R. 721, was introduced to the House.

 

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