News & Events
- 25% tax credit on investments in rail infrastructure
- 08.22.2007
- There currently is a bill before congress that would give a 25% tax credit on expenditures going towards transportation infrastructure.
The bill currently before House of Representatives is the Freight Rail Infrustructure Capacity Expanasion Act of 2007 (H.R. 2116). This bill is sponsered by representatives Corrine Brown and Kendrick Meek of Florida, Eric Cantor of Virginia, and Kevin Brady of Texas. The Senate has proposed a companion bill (S. 1125). The goal of these bills is to infuse capital into the railway system in order to increase capacity. There is a clear need to increase railroad traffic over the next 10 years as shipments of consumer goods, coal, and other freight continues to rise. It also aims to reduce truck traffic by moving as much freight as possible by rail.
The bill's proposed tax credit also applies to tunnels, bridges, freight yards, terminals, and energy efficient locomotives. As the government looks for cleaner methods of shipping goods, freight transport by railway as opposed to truck becomes more attractive.
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