Bipartisan Effort Would Impact Short Line Railroads in Luzerne, Lycoming, Philadelphia and Allegheny Counties Among Others
Short Line Railroad Tax Credit Expires On December 31st, Allows Small Railroad Companies to Make Infrastructure Upgrades
Washington DC- Today, U.S. Senator Bob Casey (D-PA) announced that he has cosponsored a bill, the Short line Railroad Rehabilitation and Investment Act of 2013, which would improve infrastructure at railroads across Pennsylvania. The bipartisan bill would impact Short Line railroads in places like Luzerne, Lycoming, Philadelphia and Allegheny Counties among others. It would allow these Short Line railroads to deduct up to 50% of investments made in track repair. With the tax credit expiring in December, Casey pushed for Congress to pass the bill this year.
“Short Line railroads help businesses across Pennsylvania move their goods,” Senator Casey said. “Renewing this tax credit will allow railroad companies to upgrade their infrastructure so that rail continues to have a role in boosting the Commonwealth’s economy.”
Short line railroads are branches of lines of larger railroads that were spun off to be the on and off ramps to the railroad network. A tax credit will be given for every 50 cents of every dollar that a customer or supplier spends on rail improvements, allowing small railroad companies to deduct up to 50% of investments made in track repair and other qualifying investments. There are 10 Short Line Railroad carriers operating in Pennsylvania that save the government millions of dollars in highway costs. The tax credit act originated with the American Jobs Creation Act of 2004, expired in January 2008, but was retroactively applied to extend through January 2012.
This bill will extend the Section 45G Short Line Railroad tax credit that is expected to expire in December 31, 2013. It will extend through 2016 allowing new Short Line railroads to be included into the tax incentive that were constructed after 2004. The new cutoff date of January 1, 2013 will be imposed to future line sales and the credit allowed will not exceed $3500 or the sum of the number of miles of railroad track owned or leased by Class II or Class III.
Pennsylvania Short Line Railroads
Allegheny Valley Railroad
- Brandywine Valley Railroad
- Chestnut Ridge Railway Company
- Conemaugh & Black Lick Railroad
- East Erie Commercial RailroadKnox & Kane Railroad
- Luzerne & Susquehanna Railroad
- Lycoming Valley Railroad
Middletown & Hummelstown Railroad
- New Castle Industrial Railroad
New Hope & Ivyland Railroad
Oil Creek & Titusville Lines
North Shore Railroad System
- Philadelphia, Bethlehem & New England Railroad
- Pittsburgh, Allegheny & McKees Rocks Railroad
Reading & Northern Railroad
Southwestern Pennsylvania Railroad
- Steelton & Highspire Railroad
- Turtle Creek Industrial Railroad
- Tyburn Railroad
Union Railroad
- Upper Merion & Plymouth Railroad
York Railway
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