New legislation, recently introduced by U.S. Sens. Debbie Stabenow (D-MI) and Mike Crapo (R-ID), would create a permanent tax credit for repairing and upgrading short line railroads, thereby promoting investments in regional railroad lines.
The most recent maintenance credit for the short line and regional railroads provided a 50 percent tax credit for every dollar spent on track maintenance up to $3,500 per mile of track. The credit was given a short-term extension in 2015, but expired Jan. 1, 2017.
The Building Rail Access for the Customers and the Economy (BRACE) Act would ensure short line railroads ability to invest in their infrastructure with a permanent tax credit instead of temporary extensions.
“Short line railroads are critical to our state’s economy, connecting small businesses in every area of Michigan to larger markets where they can sell their goods to more consumers,” U.S. Sen. Gary Peters, one of the bill’s cosponsors, said. “This bipartisan legislation will give both short line railroads and the industries they serve more certainty to make long-term investments in their companies and Michigan’s infrastructure.”
Michigan retains 21 short line railroads that operate nearly 80 percent of the total 3,582 railroad miles within the state.