Crapo, Wyden Bill Will Spur Rail Investment
Bipartisan Bill Provides Certainty to Rail Customers, Boosts Rural Economic Development
WASHINGTON - Idaho Senator Mike Crapo and Oregon Senator Ron Wyden today 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.
"Small business freight railroads connect Idaho's farms to markets across the nation and around the globe. For too long, Congress has taken a short term view of these crucial economic corridors. This measure will allow short line railroads to make long-term plans for infrastructure repairs and upgrades," said Crapo. "Short lines are a crucial economic link to thousands of railroad customers. This legislation will improve the link between our communities and the national freight railroad network."
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. Last December, Congress passed the Short line Short Line Railroad Rehabilitation and Investment Act of 2015, which expanded and extended the credit through 2016.
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.
Meeting farm to market demands, nine small freight railroads serve the Idaho economy operating 624 miles of privately owned freight track-40% of all railroad track in the state. These railroads directly employ 155 Idahoans and serve as the crucial link to the dozens of rail-dependent businesses that employ thousands more and would not be competitive without rail access. These railroads serve as the crucial link to the dozens of rail-dependent businesses that employ thousands, and would not be competitive without rail access.
Crapo and Wyden's bill is also cosponsored by Sens. Jerry Moran, R-Kan., Johnny Isakson, R-Ga., Pat Roberts R-KS, Bob Casey, D-Penn., Charles Schumer, D-N.Y., and Richard Blumenthal, D-Conn.
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