Monday, March 22, 2010

Senate OKs small-road tax credit extension

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The U.S. Senate has passed H.R. 4213, the American Workers, State and Business Relief Act of 2010. The bill includes a one-year extension of the infrastructure investment tax credit for short lines, regionals, switching/terminal railroads, and contractors. House action is still required. The language approved by the Senate is as follows:

“Expenditures for Maintaining Railroad Tracks. The bill extends for one year, through 2010, the railroad maintenance credit that provides Class II and Class III railroads (generally, short line and regional railroads) with a tax credit equal to 50% of gross expenditures for maintaining railroad tracks that they own or lease. This credit is allowable against the AMT. This revision is effective for expenses paid or incurred in taxable years beginning after December 31, 2009. This proposal is estimated to cost $165 million over ten years.”