[Congressional Record Volume 157, Number 43 (Tuesday, March 29, 2011)]
[Senate]
[Page S1937]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID (for Mr. Rockefeller (for himself, Mr. Crapo, Mr. 
        Moran, Mr. Wyden, Mr. Roberts, Mrs. Gillibrand, Mr. Wicker, Mr. 
        Boozman, Mr. Thune, and Ms. Snowe)):
  S. 672. A bill to amend the Internal Revenue Code of 1986 to extend 
and modify the railroad track maintenance credit; to the Committee on 
Finance.
  Mr. ROCKEFELLER. Mr. President, today I am introducing legislation to 
extend the Section 45G short line freight railroad tax credit.
  Section 45G creates an incentive for short lines to invest in track 
rehabilitation by providing a tax credit of 50 cents for every dollar 
spent on track improvements. If this credit is allowed to expire at the 
end of the year, private-sector investments in infrastructure in our 
communities will fall by hundreds of millions of dollars.
  ``Short line'' railroads are small freight rail companies responsible 
for bringing goods to communities that are not directly served by large 
railroads. Supporting small railroads allows the communities 
surrounding them to attract and maintain businesses and create jobs. 
The evidence of the success of this credit can be found in communities 
across America.
  This credit has a real impact for the people of my state. West 
Virginia is the second biggest producer of railroad ties in the 
country. Since the credit first was enacted, approximately 750,000 
railroad ties have been purchased above what would have otherwise been 
purchased with no incentive. Those railroad ties translate directly 
into jobs. This credit does not create just West Virginia jobs, it 
benefits manufacturers of ties, spikes, and rail all across America.
  Over 12,000 rail customers across America depend on short lines. This 
credit creates a strong incentive for short lines to invest private 
sector dollars on private-sector freight railroad track rehabilitation 
and improvements. Shippers rely on the high quality service these 
railroads provide to get their goods to market. Unfortunately, this 
credit is scheduled to expire at the end of 2011.
  This bill would extend the 45G credit through 2017 and provide the 
important long-term planning certainty necessary to maximize private-
sector transportation infrastructure investment. 54 Members of this 
body sponsored legislation that extended this credit last Congress and 
I hope there will be similar support again this year.
  I thank the Chair and ask my colleagues to join me in supporting this 
important legislation that will benefit small businesses throughout the 
country.

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