Expiration Of 45G Credit

Floor Speech

Mr. Speaker, for 7 years now, my colleague Mr. Pomeroy and I have worked to preserve transportation connections for communities that would be disconnected but for their short line and regional freight railroads. Our bill, H.R. 1132, which extends the section 45G short line railroad tax credit, is supported by 259 of our colleagues.

Unfortunately for Kansas businesses that depend upon rail service, the 45G credit expired last year. As a result, small railroads like the Kansas & Oklahoma Railroad, the Kyle Railroad, and the Nebraska, Kansas & Colorado Railway are unable to maximize their infrastructure investments to best serve their customers. The 45G tax credit generates nearly 7 million good-paying track worker hours each year. More importantly, the tax credit helps farmers and coops in rural communities of Kansas move grain to food processors in Kansas City and manufacturers in Wichita to move steel and their finished goods to market.

I rise today to express my hope that we can find a path forward to continue the economic development and sound transportation policy fostered by the tax provisions contained in H.R. 1132.

Source