WASHINGTON — In a companion move to earlier House legislation, two U.S. Senators have introduced a bill to update a key tax credit for short line infrastructure investment.
Like the House version, the Senate bill — S.1532, introduced on Wednesday, April 30 — has bipartisan sponsorship. In this case, it comes from Sens. Mike Crapo (R-Idaho), chairman of the Senate Finance Committee,and Ron Wyden (D-Oregon), the ranking member of that committee.
Both bills seek to update the Short Line Railroad Maintenance Tax Credit, or 45G credit. They would increase the maximum per-mile credit for investment in track and bridges from $3,500, where it was set in 2020, to $6,100, and codify increases indexed to the cost of inflation. It would also address the fact right-of-way that became short line track after 2015 is ineligible for the tax credit.
The House bill, H.R. 516, was introduced in January, with sponsorship from the top Republican and Democrat on the House Ways & Means Subcommittee on Tax [see “House bill would update tax credit …,” Trains News Wire, Jan. 21, 2025].
“We are immensely grateful for the bipartisan and bicameral leadership of Sens. Crapo and Wyden and Reps. Kelly and Thompson in supporting the continued growth and success of the short line industry,” American Short Line and Regional Rail Association President Chuck Baker said in a press release, “and more importantly the thousands of agricultural, energy, manufacturing, and industrial shippers we serve.”
Said Crapo, “Modernizing the Short Line Railroad Tax Credit will provide railroads with necessary certainty and resources to invest in safety, efficiency and longterm infrastructure improvements in our regional areas.” Added Wyden, “Our bipartisan bill will provide railroads with much needed resources to make vital upgrades that will bring our rural, suburban and urban communities and their local economies together.”
The House version of the bill, which has 55 cosponsors, remains in the Ways & Means Committee.
See, they can work together, WHEN THEY WANT TO…. That is the question though. How to get them TO WANT TOO!