ACTION ALERT: Generate Support for S. 881 and H.R. 1584! Short Line Railroad Tax Credit expires THIS year! Your action is required now to preserve these benefits! Note: The Section 45G tax credit has generated hundreds of millions of dollars worth of increased track work for the short line, contracting, and supply industries. You may stop reading if it is not worth two hours of your time this week to preserve this benefit, or to enable you to claim your intended share of this benefit if you have been unable to do so. This document is designed to help you support S. 881 and H.R. 1584, legislation to extend the benefits generated by the Section 45G tax credit to all short lines for the next three years. The following questions can be answered on this page:
Who are the current House and Senate co-sponsors?
A list of current co-sponsors of H.R. 1584 and S. 881 is available by clicking here. (This list may differ from lists posted on http://thomas.loc.gov due to a delay in updating the Thomas database.) Currently, short line railroad supporters from Percentage of Representatives in each state co-sponsoring H.R. 1584 (click here for larger version) Congressional districts of co-sponsors of H.R. 1584 (click here for larger version) Number of Senators from each state co-sponsoring S. 881 (click here for larger version) Why are co-sponsors so important?
The most important task facing the short line industry is the collection of a massive number of Congressional “co-sponsors.” Representatives and Senators show their support by “co-sponsoring” a bill. When an elected official co-sponsors a bill their name is added to the bill as a public declaration of support. Without strong Congressional support, there will be no motivation for Congress to extend Section 45G. Let us be perfectly clear: In order for railroads, railroad customers, contractors, and suppliers to continue to benefit from the construction increases generated by Section 45G, every member of the association must work to recruit co-sponsors. Without a strong showing, this effort will fail. In 2003 and 2004, ASLRRA supporters worked to recruit co-sponsors for H.R. 876 (108th Cong.) and S. 1703 (108th Cong.) - legislation that ultimately inspired Section 45G. ASLRRA supporters successfully recruited 268 sponsors in the House and 19 sponsors in the Senate. In 2003 it took five months for H.R. 876 to break 100 co-sponsors; an additional five months was required to break 200 co-sponsors. To complicate matters, 65 of these supporters have left office. To view a list of co-sponsors from 2003 and 2004, click here. We must accomplish in the next four months what we accomplished in ten months in 2003. The required pace is daunting, but it is within our reach if individual members devote their time to this effort. In order to achieve our goals, the ASLRRA must secure over 4 co-sponsors per day for the next 50 business days. How can I get my Representatives and Senators to co-sponsor?
A list of current co-sponsors of H.R. 1584 and S. 881 is available by clicking here. (This list may differ from lists posted on http://thomas.loc.gov due to a delay in updating the Thomas database.) Senators will co-sponsor S. 881. Representatives will co-sponsor H.R. 1584. The operative text is identical in both bills. Steps to Secure Co-sponsors:
H.R. 1584 and S. 881 will not secure the necessary number of co-sponsors without your support. By asking your elected representatives to support these bills you are exercising your First Amendment right to “petition the government.” 1. Identify your Senators and Representatives
You should contact every Representative and Senator that represents an area where your company does business. For railroad customers, contractors, and suppliers this includes the location of your shops, factories, shipping facilities, or warehouses, as well as locations where you may provide railroad repairs or services. Railroads should contact every Representative and Senator that represents an area served by the railroad. If you do not know the names of your Representatives and Senators, Christopher Johnson on the ASLRRA Washington Team can help you determine who represents your area of operation, and provide fax and phone numbers for Members of Congress. You can reach Christopher at 202-638-7790, or by e-mail at chris.johnson@cch-llc.com. 2. Contact your Senators and Representatives
a. Contacting your Representative by Telephone:
If you do not know your representatives personally, the most direct and effective way to get their attention is to develop a relationship with the staff responsible for transportation matters. This is best accomplished by speaking directly with the staff. Those of you involved in marketing your services will recognize that a direct relationship is a much more effective sales tool than unsolicited mail. Working with Congress and the staff is no different. Your company is a major service provider to the constituents of this elected official. As such, the relationship you establish can be beneficial to you beyond the preservation of short line railroad tax credits. Your Washington Team is available to help prepare you to contact your representatives. If you still have questions after reviewing these materials, please contact Adam Nordstrom (adam.nordstrom@cch-llc.com), Keith Hartwell (keith.hartwell@cch-llc.com), or Christopher Johnson (chris.johnson@cch-llc.com) by e-mail or at 202-638-7790.
b. Contacting your Representative by Letter/Fax:
Please read “Contacting your Representative by Telephone” before reading this section. When you talk with Congressional staff they will frequently ask you to reinforce your call with a letter that they can show to the Representative of Senator. You can base your letter on the text of a draft letter that can be downloaded here. However, the most effective letters will be personalized in the indicated areas. Make sure you delete the notes between brackets (“[ ]”) before sending the letter. The most effective letters and phone calls will be those that try to tell the Section 45G Story as described below. With post-anthrax attack security screening in effect, the best way to send a letter is by fax. Fax numbers can be found in the ASLRRA Congressional Directory, or by contacting Christopher Johnson at chris.johnson@cch-llc.com or 202-638-7790. Send a copy of your letter by fax to Adam Nordstrom at 202-638-1045. 3. Tell the Section 45G Story
Contacting your elected representatives is like a marketing call. You need to convince them that co-sponsorship of this bill is worth their time and limited political capital. The best way to do that is to talk about the successes (and even failures) of Section 45G. A summary of S. 881 and H.R. 1584 is available here. The best way for railroads and railroad customers to talk about the success of Section 45G is to highlight the benefits for railroad customers. Many examples of such success can be downloaded here. If you are a railroad, you should be ready with a list of success stories on your property, and ways in which customers and communities also benefited from your improved track structure. Many short line railroads were not able to take advantage of the Section 45G credit because of the alternative minimum tax (AMT). Both S. 881 and H.R. 1584 seeks to fix that problem by letting short lines use the credit against their AMT liability. If you were unable to use Section 45G because of the AMT, point that fact out, and point out the benefits that will flow from increased investment if you can use the credits after the enactment of S. 881 and H.R. 1584. If you are a contractor to railroads, talk about the kinds of track work that you have carried out in the last year, and talk about how your short line railroad customers would have been unable to carry out all of that work if the Section 45G credit was not available. Suppliers should talk about recent orders of track materials and how that order was made possible, in part or in whole, by the Section 45G credit. If you want to rehearse or review your message before you contact your Congressman, please contact Adam Nordstrom (adam.nordstrom@cch-llc.com), Keith Hartwell (keith.hartwell@cch-llc.com), by e-mail or at 202-638-7790. 4. Courtesy and Respect are of paramount importance
Being an elected representative, or a member of the staff, is a difficult and underappreciated job. Each elected official will be bombarded with dozens of issues a day, and literally thousands of requests for assistance per year. Just like you, a member of Congress can only devote their energy to a limited number of issues. Approach your Congressman with patience, and courtesy, and provide conscience, brief, and clear explanations and requests. Some frequent mistakes:
5. Keep your
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