WASHINGTON — The bipartisan Railroad Track Maintenance Credit Modernization bill, which supports short line railroad track and bridge projects, passed the 100 co-sponsor mark in the House of Representatives this week.
To date, the bill to continue the tax credit that short lines receive for maintaining and improving their physical plants, has 102 sponsors, the American Short Line and Regional Railroad Association said today. The sponsor figure puts the bill, H.R. 516, in the top 10 in the current House session — and is one of just three bills with substantial support from both Republicans and Democrats.
The Railroad Track Maintenance Credit, commonly known as the 45G tax credit referring to its section in the U.S. tax code, has been a meaningful tax incentive for two decades for short lines to put more of their own funds to work upgrading track and bridges to modern standards. Short lines have collectively spent $8 billion under the program.
Short lines operate one-third of the nation’s rail mileage and are the origin or destination of one in five railcars.
Short line industry leaders have participated in more than 500 congressional meetings in the first six months of the year in support of 45G modernization, and many will host congressional delegations on their railroads during this month’s summer recess.
Public money should come with public rights. Corporate welfare is not a solution.
These are tax credits, not grants or loans.