Bipartisan Bill Provides Certainty to Rail Customers, Boosts Rural Economic Development
WASHINGTON – Idaho Senator Mike Crapo and Michigan Senator Debbie Stabenow have introduced the Building Rail Access for Customers and the Economy, or BRACE Act, which would make permanent a critical tax credit used to repair and upgrade short line railroads.
“Our agriculture communities rely on small business freight railroads to connect their products to markets across nation and around the globe,” said Crapo. “These are crucial economic corridors that serve our communities across the nation. This measure will allow short line railroads to make long-term plans for infrastructure repairs and upgrades, improving the link between our rural communities and the national freight railroad network.”
“America’s farmers and ranchers need sound infrastructure in order to deliver their products to consumers here at home and abroad,” said Stabenow. “This bill incentivizes much needed railroad improvements to connect agricultural producers, small towns and rural communities with economic opportunities far and wide.”
The short line railroad track maintenance credit provides short line and regional railroads a 50 percent tax credit for railroad track maintenance expenses, up to $3,500 per mile of track owned or leased by the railroad. The short line railroads ensure that small manufacturers’ products can get to markets in an efficient and cost-effective manner.
Since 2006 Congress has acted periodically to extend the credit, often retroactively and often almost a year after expiration. This uncertainty causes private investment to decline, limits investments in safety and customer service, and provides uncertainty to businesses, farmers, and employers that cannot be globally competitive without freight rail.
Crapo and Stabenow’s bill is also cosponsored by Sens. Richard Blumenthal (D-Connecticut), Bob Casey (D-Pennsylvania), Jim Inhofe (R-Oklahoma), Johnny Isakson (R-Georgia), Jerry Moran (R-Kansas), Pat Roberts (R-Kansas), Chuck Schumer (D-New York), Roger Wicker (R-Mississippi) and Ron Wyden (D-Oregon).
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