RSI top
RSI logo
 
Rail Capacity & Infrastructure Funding

Green Railcar Enhancement Act of 2010

On June 9, 2010, Congressmen Earl Blumenauer (D-OR-3), Kevin Brady (R-TX-8), Bill Shuster (R-PA-9) and John Tanner (D-TN8) introduced House Bill 5478 (H.R. 5478) , the Green Railcar Enhancement Act of 2010. This bill would provide a 25 percent tax credit for replacing or rebuilding old, inefficient railcars. The tax credit will be limited to cars built in 2010 and 2011 and would require a minimum of 8% increase in capacity or fuel efficiency.

H.R. 5478: Green Railcar Enhancement Act of 2010
Executive Summary
Diesel Fuel and CO2 Savings
ARCI Statement on Green Railcar Enhancement Act of 2010

Freight Rail Infrastructure Capacity Expansion Act of 2008

House Bill 1806 (H.R. 1806) would provide a 25 percent tax credit for investments in new rail track, intermodal facilities, rail yards, locomotives or other rail infrastructure expansion projects. All businesses, including railroads, ports, shippers, trucking companies would be eligible for the credit. Examples of qualifying capacity-expanding investments include adding new track to existing right of ways; adding or extending new sidings or spurs to existing right of ways; constructing new intermodal or transload facilities; and new technology-based expansion, including signaling in dark territory. New locomotives would qualify only if they increased the total horsepower of a carrier's locomotive fleet. Finally, all freight rail infrastructure capital expenditures would be eligible for expensing treatment.

H.R. 1806 was referred to the House Committee on Ways and Means.

Short Line Tax Credit Extension

House Bill 1132 (H.R. 1132) and Senate Bill 461 (S. 461) would extend the short line tax credit through December 31, 2012. Currently this credit creates an incentive for short line railroads to invest in track rehabilitation by providing a tax credit of 50 cents for every dollar the railroad spends on track improvements; however it expired on December 31, 2009.

RSI Position: Legislation will continue to stimulate the economy, economic development and create new jobs. Potential cost benefit to rail & railway suppliers would be nearly $500 million annually.