Short lines get tax credit in tax cut package
Written by William C. Vantuono, Editor-in-ChiefPassage by both houses of Congress of the controversial tax-cut bill, to be signed by President Obama, includes the Section 45G short line tax credit sought by the American Short Line & Regional Rail Association (ASLRRA). The credit will apply to fiscal years 2010 and 2011, according to ASLRRA Vice President & Executive Director Stephen M. Sullivan.
No specifics have been forthcoming on any cash amortization measures for heavy equipment, Sullivan said.
Section 45G expired at the end of FY09, despite bipartisan support for continuing the measure. The credit allows short line and regional railroads to claim a tax credit of 50 cents per dollar spent on capital improvements, capped at $3,500 per mile of track owned or maintained by the railroad.
