RSI to Congress (Again): ‘Swiftly Pass’ Freight RAILCAR Act (UPDATED)

U.S. Rep. Brad Schneider (D-Ill.; pictured, left) has reintroduced the Freight RAILCAR Act, which has 30 co-sponsors, 28 of whom are original, including Rep. Darin LaHood (R-Ill.; pictured, right).

U.S. Rep. Brad Schneider (D-Ill.) has reintroduced bipartisan legislation enabling a tax credit for freight railcar owners purchasing new or refurbishing existing equipment. The Freight RAILCAR Act will “help improve the safety and efficiency of the North American railcar fleet while reducing greenhouse gas emissions and supporting thousands of manufacturing jobs up and down the supply chain across the United States,” according to the Railway Supply Institute (RSI), which is urging Congress to pass it.

The Freight Rail Assistance and Investment to Launch Coronavirus-era Activity and Recovery Act debuted in summer 2020, and was reintroduced for the first time in March 2021.

“The new version of the bill offers a time-limited 10% [rather than 50%] tax credit for new railcars or the modification of existing railcars to offset the costs of either replacing two existing railcars with a new railcar that would improve fuel efficiency or capacity by at least 8%, modernizing an existing railcar to improve fuel efficiency or capacity by at least 8%, or upgrading a car to DOT-117 tank car specifications,” RSI told Railway Age late on June 7. “The new bill no longer has tax credits for scrapping railcars or capital expenditures on new equipment.”

“By incentivizing private investments in higher capacity and more fuel efficient railcars, Congress can help the rail industry build a more environmentally friendly fleet,” RSI President Patty Long said in a statement released earlier this month. “This legislation [H.R. 7902] would also help ensure that the freight railcar fleet is in full compliance with the Department of Transportation’s Rule HM- 251, which ensures the safe transportation of energy products, ahead of schedule.”

The Freight RAILCAR Act has 30 co-sponsors, 28 of whom are original (starred): Reps. Darin LaHood (R-Ill.)*, Don Bacon (R-Neb.)*, Sanford D. Bishop Jr. (D-Ga.)*, Earl Blumenauer (D-Ore.)*, Suzanne Bonamici (D-Ore.)*, Mike Bost (R-Ill.)*, Eric A. “Rick” Crawford (R-Ariz.)*, Rodney Davis (R-Ill.)*, Michael F. Doyle (D-Pa.)*, Louie Gohmert (R-Tex.)*, Tony Gonzales (R-Tex.)*, Kay Granger (R-Tex.)*, Jaime Herrera Beutler (R-Wash.)*, Richard Hudson (R-N.C.)*, Jared Huffman (D-Calif.)*, Daniel Kildee (D-Mich.)*, Michael T. McCaul (R-Tex.)*, David B. McKinley (R-W.Va.)*, Peter Meijer (R-Mich.)*, Troy E. Nehls (R-Tex.)*, Jimmy Panetta (D-Calif.)*, Donald M. Payne Jr. (D-N.J.)*, Mike D. Rogers (R-Ala.)*, Linda T. Sánchez (D-Calif.)*, Terri A. Sewell (D-Ala.)*, Jackie Walorski (R-Ind.)*, Randy K. Weber Sr. (R-Tex.)*, Roger Williams (R-Tex.)*, Jake Elizey (R-Tex.), and Beth Van Duyne (R-Tex.).

“RSI thanks Reps. Schneider, LaHood, and the other co-sponsors of this legislation and urges Congress to swiftly pass this important bill,” concluded Long, who took over RSI leadership Nov. 29, 2021.

The bill has been referred to the House Ways & Means Committee. It has yet to gain the co-sponsorship of the committee’s Chairman, Rep. Richard Neal (D-Mass.), or the senior Republican member, Rep. Kevin Brady of Texas. Rep. Schneider, who introduced the bill, is a Ways & Means Committee member, as are co-sponsors LaHood, Blumenauer, Kildee, Panetta, Sánchez, Sewell and Walorski. H.R. 7902 currently has no Senate counterpart as the Constitution (Article I, Section 7) requires tax legislation originate in the House. The fate of the bill depends on a House Ways & Means Committee hearing and a majority vote that it be considered on the House floor. If passed by the House of Representatives, it would move to the Senate Finance Committee for initial Senate consideration. The limited number of legislative days remaining in this election year make passage of any legislation recently introduced difficult absent fast-tracking by House and Senate leadership.