Shenango Valley News

U.S. Representatives Mike Kelly and Mike Thompson have introduced the Short Line Railroad Tax Credit Modernization Act, a legislative proposal aimed at enhancing the operation and maintenance of local rail lines across the United States. The initiative seeks to bolster commerce in communities nationwide by making it easier for short line rail services to function effectively.

Rep. Kelly emphasized the importance of short line rail service, particularly in small towns like those in Western Pennsylvania. "Short line rail service connects communities and provides rail service in small towns nationwide, including stops throughout Western Pennsylvania," he stated. He noted that for some local companies, these lines are essential for shipping products nationally.

Rep. Thompson highlighted the significance of this mode of transportation for rural areas. “Short line rail is critical for rural and small communities to connect to suppliers and distributors," he said, expressing gratitude towards Rep. Kelly for his collaboration on reintroducing the legislation.

Chuck Baker, President of the American Short Line and Regional Railroad Association, underscored the success of the 45G tax credit since its inception, which has facilitated over $8 billion in infrastructure investment by the short line freight railroad industry. He warned that outdated caps could diminish its effectiveness but expressed appreciation for Kelly's and Thompson's bipartisan efforts: “We thank Representatives Kelly and Thompson for their bipartisan leadership in introducing this legislation to modernize the credit."

The bill aims to enable short line railroads to maintain efficient operations while supporting economic growth in small towns and rural communities.