The American Short Line and Regional Railroad Association (ASLRRA) recently expressed its support of the extension of the short line tax credit.
The credit was part of the Bipartisan Budget Act of 2018 and is retroactive through Dec. 31, 2017.
The credit benefits 10,000 short line and regional railroads that use the credit to fund the upgrade of railroad bridges and tracks. Rail lines must invest $1 for every 50 cents in credit up to a $3,500 per mile.
More than $4 billion has been invested since the tax credit was implemented in 2005. The majority of the investment helped repair Class I railroads that fell into disrepair after deregulation three decades ago.
“The short line tax credit has enabled our industry to make significant progress on upgrading and improving track, but there is much more work to be done including repairing aging bridges,” ASLRRA Chairwoman Judy Petry said. “The credit drives economic and employment growth beyond simple railroads – investing in better track spurs new investment by railroads customers, and railroad rehabilitation creates skilled jobs, particularly in rural locations.”
The bipartisan Building Rail Access for Customers and the Economy Act, introduced in 2017, would make the tax credit permanent.