Legislation passed this week by the House and Senate to avert the “fiscal cliff” includes an extension of the 45G short line freight railroad tax credit.
Section 306 of H.R. 8, the American Taxpayer Relief Act, extends 45G until Jan. 1, 2014.
“America’s 550 small freight railroad companies extend their thanks to the 52 Senators and 257 Representatives who co-sponsored similar legislation in this Congress,” said Richard F. Timmons, president of the American Short Line and Regional Railroad Association, in a written statement. “Since 2005, the 45G credit has helped small, community railroads and their customers reinvest over $1.2 billion dollars in preserving freight railroad infrastructure to serve customers and communities across America.”
Timmons noted that the Railway Tie Association estimates that as many as 1.5 million additional railroad ties are installed when the credit is in effect.
“The 45G success story is the story of reducing federal taxes and interference with small businesses and allowing those businesses to invest more of what they earn in ways that benefit all Americans,” he concluded.