News

27 Sep 2007

The National Industrial Transportation League (NITL) formally endorsed extending the short line railroad rehabilitation tax credit.


The rehabilitation tax credit, known as 45G, was first enacted in 2004. It provides a credit of 50 cents per dollar spent on track rehabilitation, up to a credit cap of $3,500 per mile of railroad owned or leased by the short line.
“The ultimate beneficiaries of the tax credit are the customers that depend on short lines to move their goods,” said Curt Warfel, NITL Chairman. “Today, short lines serve over 12,000 facilities that employ [a total of] over 1 million people,” he continued. “The majority of these businesses are located in areas of the country that have no other rail service.”The proposed legislation (contained in House bill HR 1584 and Senate bill S 881) increases the credit cap to $4,500 per mile.