Short line tax credit could become permanent

The U.S. freight rail industry is hopeful that a temporary federal incentive that encourages short line railroads to make capital investments will become permanent.

Within the $1.4 trillion fiscal year 2021 appropriations bill that Congress passed, there is a provision that would make permanent the short line tax credit. The credit, also known as the 45G tax credit in reference to the U.S. tax code, provides short lines with up to $3,500 per short line railroad mile to invest in infrastructure improvements.

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