Wyden introduces legislation to boost tax credits for regional, short line railroads like the City of Prineville Railway
WASHINGTON (KTVZ) -- Senate Finance Committee Chair Ron Wyden, D-Ore., introduced bipartisan legislation on Tuesday to modernize and expand the tax credit used to maintain short line railroads in Oregon, Idaho and nationwide, such as the City of Prineville Railway.
Senate Finance Committee Ranking Member Mike Crapo, R-Idaho, cosponsored the legislation.
“Short line and regional railroads are an essential part of our infrastructure and a lifeline that connects small businesses with consumers in markets all over the country,” Wyden said. “Senator Crapo and I worked for years to make the tax credit for these railroads permanent, and the next step is to improve it to meet the needs of our businesses and communities today. Our bipartisan legislation will deliver much-needed relief for short line and regional railroads to make vital upgrades that connect our rural communities, small towns, and urban centers to the marketplace.”
In 2020, working with Crapo, Wyden secured a permanent extension of the tax credit for short line track maintenance, which had been a temporary credit for years, hampering investment.
The new proposal, the Short Line Railroad Tax Credit Modernization Act, would increase the tax credit available for track rehabilitation and maintenance from $3,500 per mile to $6,100 per mile. It would also make more track eligible for the credit. Under current law, eligibility is based on maps of track that was owned or leased by short line railroad operators as of 2015. The bill would expand eligibility to all track owned or leased as of 2024.
A companion bill in the house is co-sponsored by Reps. Earl Blumenauer, D-Ore., and Mike Kelly, R-Pa.
Oregon is home to 15 short line and regional railroads, which make up more than half of all Oregon freight rail lines. These rail lines directly employ hundreds of Oregonians and serve as the crucial link to the dozens of rail-dependent businesses that cannot be competitive without access to rail lines.
