On Feb. 15, Rep. Lynn Jenkins (R-Kan.) introduced the Short Line Railroad Reha bilitation and Investment Act of 2011 (H.R. 721), which would extend the Section 45G short-line tax credit through Dec. 31, 2017. Co-sponsored by Reps. Jim Costa (D-Calif.), Earl Blumenauer (D-Ore.), Jerry Costello (D-Ill.) and Bill Shuster (R-Pa.), the bill also would allow tax credit eligibility for new short lines formed after Jan. 1, 2005, and before Jan. 1, 2011. H.R. 721 has been referred to the House Committee on Ways and Means. In December, the passage of the Middle Class Tax Relief Act of 2010 extended the short-line tax credit through 2011. Originally enacted in January 2005, the Section 45G provision enables regionals and short lines to claim a tax credit of 50 cents for every dollar spent on infrastructure improvements, up to a cap of $3,500 per mile of owned or leased track. The tax credit helps fund more than $300 million worth of short-line infrastruc ture improvements annually, according to the American Short Line and Regional Railroad Association, which has lobbied Congress the past few years for a long term tax credit extension.
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