U.S. Sens. Ron Wyden (D-OR) and Mike Crapo (R-ID) introduced legislation they said will modernize short line rail credits and provide rail operators with the resources to ensure safe infrastructure.
The legislation would expand the Short Line Railroad Tax Credit, the law makers said and would increase the credit available for track rehabilitation and maintenance from $3,500 per mile to $6,100 per mile. Additionally, the bill would make more tracks eligible for the credit. Currently, the tax credit eligibility is based on maps of tracks made in 2015. The bill would expand the eligibility of tracks as of 2025 and in accordance with modern maps, officials said.
“Short line and regional railroads are not just a mode of transportation, 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.”
The bill also provides a formula for future increases in line with cost-of-living increases.
“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.”