U.S. senators recently introduced bipartisan legislation that would make permanent a tax credit introduced in 2004 that’s used to repair and upgrade short-line railroads.
The bill has been extended previously on a periodic basis.
The bill, the Building Rail Access for Customers and the Economy (BRACE) Act, makes permanent a tax credit intended to encourage railroads, passengers and suppliers to invest directly in maintaining short-line rails.
The lines transport mostly manufacturing and agricultural freight.
Annually, the tax credit generates between $36 million and $458 million.
The bill was introduced by U.S. Sens. James Crapo (R-ID), Jerry Moran (R-KS) and Ron Wyden (D-OR). It was cosponsored by U.S. Sens. Richard Blumenthal (D-CT), Bob Casey (D-PA), Jim Inhofe (R-OK), Johnny Isakson (R-GA), Pat Roberts (R-KS), Chuck Schumer (D-NY), Debbie Stabenow (D-MI), John Thune (R-SD) and Roger Wicker (R-MS).
“Short line railroads connect rural and regional economies across our state and provide communities with access to national and global markets,” Moran said. “The BRACE Act would make certain that short line railroads and the communities who depend on them can stay up-to-date on critical maintenance and track improvements. This bipartisan legislation would mark significant progress as we work to make critical, much-needed investments in our nation’s transportation infrastructure.”