[Congressional Record Volume 156, Number 76 (Wednesday, May 19, 2010)]
[Extensions of Remarks]
[Page E881]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              EXPRESSING SUPPORT FOR SHORT LINE RAILROADS

                                 ______
                                 

                         HON. JERRY F. COSTELLO

                              of illinois

                    in the house of representatives

                        Wednesday, May 19, 2010

  Mr. COSTELLO. Madam Speaker, I rise today to express my support for 
the extension of the Section 45G Short Line Railroad Tax Credit, which 
expired on December 31, 2009.
  As a senior member of the House Transportation and Infrastructure 
Committee, I appreciate the economic benefits a strong, reliable rail 
network provides our economy. Rail has kept our economy connected and 
competitive for decades and is critical to driving our economic 
recovery.
  Key to the rail network are short line railroads, which keep 13,000 
small and rural rail customers connected to the main line railroad 
network and the global economy. However, short line railroads must 
invest heavily in repairing and maintaining track, more than any other 
segment of the rail industry. To address this, Congress enacted the 
Section 45G short line railroad tax credit, which encourages short line 
railroads to invest in critical track maintenance. These improvements 
are necessary to improve the efficiency of our national rail network 
and keep our economy moving. This tax credit expired on December 31, 
2009.
  Without an extension of this tax credit, short line railroads are 
unable to initiate long-term plans, and have halted much needed 
infrastructure projects across the country--projects that create good-
paying jobs on and off the tracks. The Section 45G credit generates 
approximately 3,305 full-time jobs annually and supports tens of 
thousands of jobs in America's steel and timber industries that make 
railroad ties or steel rail.
  Madam Speaker, it makes economic sense to provide certainty to this 
industry and extend this tax credit. Short line railroads are too 
important to our economy. As a cosponsor of H.R. 1132, legislation to 
extend the credit through 2012, I urge swift action on extending the 
Section 45G short line railroad tax credit and urge my colleagues to 
support it.

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