U.S. Sens. Mike Crapo (R-ID) and Ron Wyden (D-OR) introduced legislation this week that would expand the Short Line Railroad Tax Credit.
Crapo, the Senate Finance Committee Chair, said the legislation would modernize the tax credits for short line and regional railroads. Companion legislation was introduced in the House by U.S. Reps. Mike Kelly (R-PA) and Mike Thompson (D-CA).
“Short line railroads are critical infrastructure that connect Idaho’s farmers, ranchers and manufacturers to national and global markets, supporting local jobs and driving economic growth in rural Idaho,” Crapo said. “Modernizing the Short Line Railroad Tax Credit will provide railroads with necessary certainty and resources to invest in safety, efficiency and long-term infrastructure improvements in our regional areas.”
Officials said the legislation would increase the per mile credit cap from $3,500 to $6,100; index the per mile credit cap for inflation; and update the track eligible for the credit to match modern maps.
“Short line and regional railroads are not just a mode of transportation, but they are also a vital economic tool that connects local businesses with Oregonians and other people all across the nation,” Wyden said. “For years, Senator Crapo and I worked together to make railroad tax credits permanent, and the next step is to make these tax credits better for our operators. Our bipartisan bill will provide railroads with much needed resources to make vital upgrades that will bring our rural, suburban and urban communities and their local economies together.”