Legislation Offers Incentives to Increase Rail Capacity

Bills in Congress would help to reduce worsening highway congestion, improve air quality, increase fuel efficiency, improve highway safety, and strengthen the national economy.

The bipartisan Freight Rail Infrastructure Capacity Expansion Act, introduced in the Senate by Senators Trent Lott (R-MS) and Kent Conrad (D-ND) and in the House by Representatives by Kendrick Meek (D-FL) and Eric Cantor (R-VA), would help expand freight rail capacity and help the nation's transportation infrastructureaccomodate dramatic increases in freight traffic.

The bill encourages private investment to expand freight rail capacity by providing a 25 percent tax credit for any business investing in new rail track, intermodal facilities, rail yards, locomotives, or other rail infrastructure expansion projects.  Railroads, ports, shippers, trucking companies, and others would be eligible for the credit.

Many studies, including the Freight Rail Bottom Line Report by the American Association of State Highway and Transportation Officials (AASHTO) have predicted a 67 percent increase in freight volumes over 20 years.  AASHTO also concluded that, "relatively small public investments in the nation's freight railroads can be leveraged into relatively large public benefits for the nation's highway infrastructure, highway users, and freight shippers."

Additional original co-sponsors of the legislation include Senators Thad Cochran (R-MS), Ben Nelson (D-NE), Lindsey Graham (R-SC), Johnny Isakson (R-GA), Ted Stevens (R-AK), Chuck Hagel (R-NE), Mary Landrieu (D-LA), and Mike Crapo (R-ID).

To learn more about S. 1125 and H.R. 2116, click here.