Earl Blumenauer

From the office of:

Earl Blumenauer

Sending Office: Honorable Earl Blumenauer
Sent By:

Dear Colleague:

As the freight rail industry has evolved, many short line railroads and smaller communities have been abandoned, removing critical first- and last-mile links between producers, consumers, and export opportunities in large and small communities across America.
Since it was first enacted in 2005, the Short Line Railroad Maintenance Credit has been extended for one- or two-year increments, providing limited certainty for short line railroads to make investments in their infrastructure. Our legislation provides
certainty by making the Short Line Railroad Maintenance Credit permanent while also applying it retroactively to tax year 2018.

The Short Line Railroad Maintenance Tax Credit (“45G”) is responsible for more than $4 billion of investment in privately-held short line railroads across America. The tax credit requires a short line railroad invests $1 for every 50 cents in credit, up
to a credit cap of $3,500 per track mile. In 2015 alone, 2,140 rail miles were improved, 5.27 million ties were replaced, and the short line industry invested nearly 25% of their revenue on infrastructure improvements. These investments ensure that more than
10,000 rail customers can rely on safe, efficiently, and economically-competitive transportation for their products.

The short line rail industry operates nearly 50,000 miles of track in 49 states and is part of the origination or termination of one of five cars on the national railroad system. Short line railroads serve the most vulnerable part of the rail network: small
towns and small businesses who would have otherwise been cut off from the national network. We hope you will join us in supporting this effort to improve our nation’s infrastructure.



Earl Blumenauer Mike Kelly
Member of Congress Member of Congress
Related Legislative Issues

Selected legislative information: Economy, Finance, Labor, Taxes, Transportation

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