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Two things you should be doing today to advance the 45G credit.
1. 
Recruit House and Senate Co-sponsors
2.  Collect (or require contractors to collect) before-and-after photos of track work 


1. Short Line Railroad Rehabilitation and Investment Act of 2015 - Action needed to get Congressional support.

Rep. Lynn Jenkins (R-KS) along with Representatives Earl Blumenauer (D-OR), Rodney Davis (R-IL), and Dan Lipinski (D-IL) have introduced H.R. 721, and Senators Mike Crapo (R-ID), Ron Wyden (D-OR), Jerry Moran (R-KS), Charles Schumer (D-NY), Johnny Isakson (R-GA), Bob Casey (D-PA), John Boozman (R-AR) and Richard Blumenthal (D-CT) have introduced S. 637 to extend the Short Line Tax Credit. Originally enacted in 2004, Section 45G creates a strong incentive for short line railroads to invest private sector dollars on freight railroad track rehabilitation. The credit expired at the end of 2014.

What This Legislation Will Do

The Short Line Tax Credit leverages private sector investment in rail infrastructure by providing a tax credit of 50 cents for every dollar spent on track improvements. The credit is capped based on a mileage-based formula. H.R. 721 and S. 637 propose the following:

  • Extend 45G – Section 45G expired on December 31, 2014, and this bill will extend Section 45G for tax years 2015 and 2016.
  • Eligibility for new railroads created after 2004 and before 2015 – Expenses to maintain short lines created after 2004 should qualify for 45G. This bill imposes a cutoff date of January 1, 2015, to cap the credit at a known number.
  • Cap the Cost - As in previous years, the credit remains capped at the product of total miles of track and $3,500 per mile credit and has historically scored between $165 and $202 million per year

Broad Bi-Partisan Support
From the 111th through the 113th Congress, legislation to extend 45G was co-sponsored by over 250 Representatives and 51 Senators, with broad bi-partisan support.  Supporters recognize that the credit creates jobs and preserves valuable transportation infrastructure in areas of the country that can ill-afford fewer freight alternatives.

For the complete text of the bill, additional information, and handouts for your Members of Congress, click here.

Show Your Support for the Short Lines
House Supporters – To Co-Sponsor H.R. 721, contact:

Senate Supporters – To Co-Sponsor S. 637, contact:


 

2. Collect (or require contractors to collect) before-and-after photos of track work

 

Rep. Lynn Jenkins, CPA (R-KS) believes that the best way to prove the effectiveness of Section 45G is to document short line track work in photos.  Photos of all track work are encouraged.  If you claimed or assigned 45G credits and made track improvements, we want pictures that demonstrate the work even if only a part of the upgrade was supported by 45G.  If your railroad benefited from 45G, so did your track condition, so photograph it and share the photos with us!

Better yet, make your contractors take the photos.  ASLRRA has prepared boilerplate language and instructions which can be included in your purchase orders and track work contracts!  Include this language and have your contractors do the work for you while supporting the 721 effort at the same time!

Before & After

Track work photos will be compiled into our 45G Success Story Book and used to promote 45G on Capitol Hill.  Contractors that provide photos can also have their logo and contact information included in the project work summary!  Photographs should be high-resolution, print-quality digital images.  Photographs from most popular digital cameras will suffice.

Before & After

Photos may be taken by any employee of the contractor on regular digital camera equipment - no professional or third-party photographers are required.  Photos are best when taken before and after the work from the same or similar location.  If you miss the "before" part, "during" photos can suffice.  For examples, review the 45G Success Story Book. 

E-mail your photos with identifying information to ashley.bosch@cch-llc.com.