Freight rail tax credit reintroduced in Senate

Railway Age, May, 2007

Railroads spend billions each year to maintain and expand infrastructure, but it may not be enough to meet the 67% spike in freight traffic that DOT predicts by 2020. At a recent Surface Transportation Board hearing (details, p. 10), shippers and others called for increased capacity and speed to meet growing demands.

That's among the reasons why last month Senators Trent Lott (R-Miss.) and Kent Conrad (D-N.D.) introduced legislation that would provide a 25% tax credit for capital expenditures to any business investing in new track, intermodal facilities, rail yards, locomotives, or other rail infrastructure expansion projects. Railroads, ports, shippers, trucking companies, and other transportation businesses would be eligible for the credit. While there are many bill supporters, similar legislation failed in 2006.