U.S. Reps. Darin LaHood (R-IL) and Brad Schneider (D-IL) introduced legislation Monday to incentivize private investment into the freight railcar manufacturing industry.
The Freight Rail Assistance and Investment to Launch Coronavirus-era Activity and Recovery (Freight RAILCAR) Act would provide tax credits for railcar leasing and manufacturing companies for the cost of replacing two existing railcars with new more fuel-efficient railcars or refurbishing existing railcars. The bill would also offer additional tax credits for capital expenditures to modernize equipment and technology to meet environmental standards.
“The COVID-19 pandemic is impacting infrastructure across the country, including the railway supply industry which is vital to the freight rail system in central and west-central Illinois,” LaHood said. “This bill will spur job growth in the freight rail manufacturing sector, creating opportunities to invest and innovate in the critical infrastructure of freight rail, and strengthen our transportation system as we work to recover from COVID-19.”
Both men said the bipartisan bill would provide good jobs and help spur economic growth in the post-COVID-19 era. Illinois has been a hub of the nation’s rail network. The industry has more than 9,400 employees working directly for rail suppliers in Illinois and generates more than $5 billion in economic value for the state.
“The railway supply industry provides thousands of high-paying manufacturing jobs to Illinoisans across the state,” Schneider said. “Incentivizing the industry to make investments now will help protect these jobs while creating additional environmental benefits to modernize for the future.”
The Rail Security Alliance supports the bill.
“We are grateful for the leadership of Representatives LaHood and Schneider for introducing the Freight RAILCAR Act. The timing of this legislation could not be more important to our nation as we seek a strong recovery from the COVID-19 pandemic,” said Erik Olson, Vice President, Rail Security Alliance.
The Congressmen said the bill would increase security, efficiency, and capacity of the country’s freight railroads while supporting the manufacturing and supply chain.