The freight rail industry supports the continuation of the short line railroad Section 45G tax credit, which was originally enacted in 2005 and recently made permanent to spur infrastructure investment by hundreds of short line and regional railroads.

The tax credit helps approximately 630 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 the factories and facilities that employ over one million Americans. Short lines help move grain from the Great Plains to the Gulf Coast ports, sand from Wisconsin to Pennsylvania gas fields, ore to steel mills, coal to power plants, and finished Michigan-made cars for export abroad.

The short line tax credit was made permanent in December of 2020 so that short line and regional railroads can continue to make the investments necessary to support the more than 10,000 customers who depend on them.

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