Freight Rail Policy Stance: The government should make the Section 45G short line tax credit permanent tax policy. Short line and regional railroads connect more than 10,000 customers to the national main line rail network. The tax credit makes it possible for these smaller railroads to upgrade and modernize their infrastructure to meet customer needs.
The freight rail industry supports the continuation of the short line railroad Section 45G tax credit, which was originally enacted in 2005 to spur infrastructure investment by hundreds of short line and regional railroads.
The tax credit helps nearly 600 short line railroads preserve nearly 50,000 miles of track, which connect more than 10,000 rail customers to the national main line rail network. These freight rail connections are critical to preserving the first and last mile of connectivity to factories, grain elevators, power plants, refineries, mines and facilities that employ over one million Americans.
The short line tax credit must be made permanent policy so that short line and regional railroads can make the investments necessary to support the more than 10,000 customers who depend on them.