Rail Capacity Expansion Incentives

Bills in Congress would give a substantial boost to new investment in our nation's freight rail infrastructure.  New capacity would allow railroads to carry more freight - helping to relieve highway congestion, reduce pollution, reduce our need to build costly new highways, save fuel, and enhance safety.

The Freight Rail Infrastructure Capacity Expansion Act (S. 1125 and H.R. 2116, or FRICEA) would give a 25 percent tax credit to businesses that invest in new freight rail infrastructure that expands rail capacity.  This would give railroads, shippers, and others incentives to lay "track where no track has gone before."  The bill would also put railroads on equal footing with trucking companies and barges by allowing railroads to "expense" their infrastructure spending.

The nation is facing a freight mobility crisis and the health of our economy will depend on our ability to ship dramatically increasing amounts of goods.  Railroads are investing record amounts of their own funds in their networks, but that will not be enough to take advantage of railroads' potential to meet our freight transportation needs.

Tax incentives for rail capacity enhancements would help bridge the funding gap and produce public benefits that would far exceed the cost of the incentives.  Without incentives, many rail projects that would otherwise improve the ability of our nation's farms, mines, and factories to move their goods to market will be delayed or not completed at all.

Ask your legislators to co-sponsor S. 1125 and H.R. 2116.