Rail-upkeep tax-credit revival bill draws broad support
U.S. Rep. Dan Lipinski (D-IL) teamed up on Wednesday with fellow U.S. Reps. Lynn Jenkins (R-KS), Earl Blumenauer (D-OR) and Rodney Davis (R-IL) in introducing HR 721, titled the Short Line Railroad Rehabilitation and Investment Act of 2015.
HR 721 will extend Section 45G (26 USC 45G) of the short-line track maintenance tax credit that recently expired.
Lipinski said private investment in rail infrastructure has increased due to the tax credit.
The credit, in particular, benefits the City of Chicago, he said.
“In the Chicago area, the tax credit has been used to reduce congestion, increase safety and improve local business competitiveness," Lipinski said. "Let's continue to put people to work and improve American transportation by enhancing and extending the short-line tax credit."
Jenkins said a number of benefits are associated with the tax credit, including the maximization of private infrastructure investment and permitting railroads to offer prices that are more competitive for customers.
“By leveraging this tax credit to redevelop track and track spurs critical to the first and last mile of connectivity to factories, grain elevators, power plants, refineries, mines and other facilities, these companies provide the key transportation link for rail customers employing more than 1 million Americans," Blumenauer said.
Davis said the credit will lead to increased investments in capital.