Congress extends rail shortline tax credit

OREANDA-NEWS. December 21, 2015. The US Congress extended a 50pc tax credit for shortline railroads in an omnibus spending bill passed today.

The two-year shortline tax credit extension was included in an omnibus budget bill approved by the House in a 316-113 vote and by the Senate in a 65-33 vote. President Barack Obama is expected to sign the measure.

The railroad track maintenance credit applies to expenditures by Class II or Class III railroads between 31 December, 2014, and 1 January, 2017, meaning the shortlines can retroactively apply it for improvements they made this year.

The budget bill also includes \\$39mn for railroad research and development and about \\$50mn in railroad safety grants.

The legislation also includes about \\$32mn for the Surface Transportation Board, a slight increase from previous budgets.

Congress passed a separate STB reauthorization bill on 10 December and sent it to Obama, who has yet to sign the measure.

The bill is the first STB overhaul in 20 years. It expands board to five members from three, and is aimed at streamlining the review process for rate disputes that is seen as cumbersome and costly.

STB must also report to Congress on whether large-rate case methodologies are efficient or too expensive.