Senators Crapo and Wyden Introduce Short Line Railroad Tax Credit Bill

Aberdeen Carolina and Western Railway

WASHINGTON, D.C. - The Senate has introduced a Short Line Railroad Tax Credit bill that serves as a companion to House Bill H.R. 516 that was introduced in January.

According to ASLRRA’s Views & News, the Short Line Railroad Maintenance Tax Credit Modernization Bill, S. 1532, will increase the per-mile credit gap to $6,100. The per-mile credit gap is currently $3,500. The bill will also index the per-mile credit gap for inflation and make all track eligible for said credit.

Senator Mike Crapo (R-Idaho) and Senator Ron Wyden (D-Ore.) introduced the bill, and both have worked to make the credit permanent as “part of a larger spending package passed in 2020.” The Senate bill has 5 co-sponsors, and the House bill has 61 co-sponsors.

ASLRRA President Chuck Baker said, “This 45G Tax Credit is widely considered an effective and successful public policy. It has been responsible for significant private investment in infrastructure, but outdated caps and limitations are threatening to erode its potency. . . We are immensely grateful for the bipartisan and bicameral leadership of Senators Crapo and Widen and Representatives Kelly and Thompson in supporting the continued growth and success of the short line industry and more importantly the thousands of agricultural, energy, manufacturing, and industrial shippers we serve.”