U.S. Reps. Darin LaHood (R-Ill.) and Brad Schneider (D-Ill.) have reintroduced the Freight RAILCAR Act, bipartisan legislation supported by the Railway Supply Institute (RSI) that would “encourage the adoption of new, more efficient, environmentally friendly freight railcars.”
The bill offers freight railcar owners a time-limited 50% tax credit for purchasing new or refurbishing existing cars that would improve capacity or fuel usage by at least 8%, according to RSI. It also provides separate tax credits for scrapping railcars based on their depreciated value and for capital expenditures on equipment or technology enhancements that improve environmental standards or the safety, quality or efficiency of railcar manufacturing and repair operations, the trade group said.
“The Freight RAILCAR Act will help incentivize private investment in the freight railcar manufacturing industry to preserve thousands of American jobs, reduce our carbon footprint and ensure the integrity of our critical rail supply chains,” said Nicole Brewin, Senior Vice President of Government and Public Affairs for RSI. “This legislation would offer incentives for new and sustained investments to help stabilize the freight railcar manufacturing industry during this critical time.
“While the rest of the economy begins to recover, railway suppliers across the United States continue to face increasingly difficult economic circumstances. This is the right bill for the right time, and we thank representatives Schneider, LaHood and the other sponsors for introducing this critical legislation.”
The other original sponsors of the bill are House Transportation and Infrastructure Rail Subcommittee Chairman Donald Payne (D-N.J.) and Ranking Member Rick Crawford (R-Ark.), along with Reps. Rodney Davis (R-Ill.), Randy Weber (R-Tex.), Earl Blumenauer (D-Org.), Terri Sewell (D-Ala.), Jackie Walorski (R-Ind.), Sanford Bishop (D-Ga.), Suzanne Bonamici (D-Ore.), and Louie Gohmert (R-Tex.).