U.S. Reps. Darin LaHood (R-IL) and Brad Schneider (D-IL) announced Monday they had reintroduced legislation to incentivize investment into safer freight railcar manufacturing in the United States.
LaHood and Schneider said the legislation, the Freight RAILCAR Act, would provide a time-limited tax credit for the purchase of new railcars or modifications of existing ones that would offset the costs of taking outdated railcars out of service while replacing them with ones that improve fuel efficiency and modernize the freight rail industry. The legislation is designed to strengthen American job opportunities and ensure the sustainability of the North American steel and rail supply chain, the Congressmen said.
“Illinois’ rail network is a vital economic driver that impacts agriculture, manufacturing, and our local communities. The Freight RAILCAR Act will spur job growth in the freight rail manufacturing sector, creating opportunities to invest in critical freight rail infrastructure and strengthen our transportation system,” LaHood said. “I am proud to again join my colleague from Illinois, Brad Schneider, to reintroduce our bill that will support thousands of jobs in the United States.”
In 2020, the railway supply industry employed more than 16,000 workers in Illinois and had a $5.7 billion impact on the state’s GDP. The proposed legislation would ensure the survival of the rail supply industry hard hit by downstream economic effects during the COVID-19 pandemic, the congressmen said.
“I am proud to reintroduce this legislation with my colleague, Rep. LaHood, to protect jobs in the rail sector and help build a more fuel-efficient and safer rail fleet,” Schneider said. “As we’ve seen over the last three years, it is critical we strengthen every part of our supply chain – including all components of rail infrastructure – to be more resilient, especially as our economy emerges from the pandemic.”