(The following appeared on the Progressive Railroading website on June 25, 2009.)
Yesterday, the American Short Line and Regional Railroad Association (ASLRRA) announced it reached a milestone in securing congressional support to extend the short line tax credits.
The Short Line Rehabilitation Tax Credit bill (H.R. 1132/S. 461) now has 101 co-sponsors in the House and 22 co-sponsors in the Senate, ASLRRA said. In addition, more than 1,000 shippers support the legislation, according to the association.
The bill would extend the Section 45G railroad track maintenance credit, which is set to expire on Dec. 31, for three years, allow eligibility for new short lines and increase the credit limitation from $3,500 per mile of owned or leased track to $4,500.
“As our economy is on the cusp of recovery, the tax credit is timely and vital to the small freight railroads and the local businesses and communities that rely on them to ship local products, create local jobs and even divert trucks off of local roads,” said ASLRRA President Richard Timmons in a prepared statement.