We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Senate bill would give rails tax credits for expanding capacity
newsworthy

Senate bill would give rails tax credits for expanding capacity

August 9, 2010
Mark B. Solomon
No Comments

A bill introduced in the Senate on Aug. 6 would provide the nation's freight railroads with federal tax incentives to spur investment in new equipment and infrastructure that would encourage more freight to move by rail.

The bill, introduced by Sens. Kent Conrad (D-N.D.) and John Ensign (R-Nev.), would give railroads a 25 percent tax credit for qualifying investments such as trackage, locomotives, tunnels, rail yards, and intermodal transfer and transloading facilities.

The bill would also allow railroads to expense all qualifying capital purchases instead of depreciating them, a change that would accelerate the pace of capital investment needed to expand rail capacity.

The Senate bill mirrors legislation in the House introduced in 2009 by Rep. Kendrick Meek (D-Fla.). The railroad industry has lobbied hard for two years to advance these initiatives but with little success so far.

The Association of American Railroads hailed the measure, saying incentives are needed both to strengthen the nation's goods-moving system and to improve the underlying network for proposed high-speed passenger rail service that would move over the nation's freight tracks.

Railroads, which finance infrastructure projects with private funds, said they spent $460 billion from 1980 to 2009 on network expansion. Without some form of government stimulus, the industry projects that it will face a $39 billion shortfall in infrastructure needs by 2035 to meet projected demand.

The American Trucking Associations said it had no comment on the legislation.

Lawrence H Kaufman, a noted rail writer, executive, and consultant, said an investment tax credit, if properly crafted, could generate enough economic benefits to more than offset the impact on the U.S. Treasury in lost tax revenue. Kaufman said railroads need sufficient access to capital in order to "build their way out of congestion." A properly designed investment tax credit, he said, "gives them greater access to capital."

Transportation Rail Regulation/Government
  • Related Articles

    Bill would give freight voice in infrastructure planning

    Senate bill would up truck weight limit

    White House highway bill proposal would require driver payments for down time

Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • A look into the future of robotics

  • A primer on warehouse robots

  • Exotec Skypod System Adopted by Gap Inc. to Optimize Returns Process

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Truck driver availability tightens to three-year low, ACT says

Now Playing on DCV-TV

Eb277b97 c776 48f1 98e6 6591f2fc98c2

Are you Considering Using Automated Guided Vehicles or Autonomous Mobile Robots in your Facility?

DCV-TV 4: Viewer Contributed
Flooring is one key component that should be considered for optimal robotic performance on elevated platforms. Gloss, texture, wear, and the condition of the floor can all effect the ability of the robot to run at its peak operating levels. Learn how ResinDek flooring can solve these issues.

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing