Bill would renew US rail shortline tax credit

OREANDA-NEWS. Legislation introduced in the US House of Representatives would extend to 2017 the shortline railroad maintenance tax credit that expired at the end of 2014.

Shortline railroads and shippers have pushed Congress to renew the credit.

The credit first enacted in 2005 gives regional and shortline railroads a tax credit of 50 cents for every dollar spent on infrastructure. Representatives Lynn Jenkins (R-Kansas), Rodney Davis (R-Illinois) and Dan Lipinski (D-Illinois) introduced HR 721 on 4 February. It has been referred to the House Ways and Means Committee.

Jenkins said the credit "helps maximize private infrastructure investment and allows these railroads to provide their customers with more customized and competitively priced service. This bipartisan proposal ensures the continuation of the vital link between our communities and the national freight railroad network."