Tax credit boosts crosstie market
Written by William C. Vantuono, Editor-in-ChiefThe short line tax credit will drive small railroad crosstie purchases to an estimated 4,063,0009 in 2011 compared to 2,878,000 in 2010, according to an updated forecast by the Railway Tie Association.
The tax credit is scheduled to expire Dec. 31, and unless it is renewed short line/regional tie purchases will drop back to around 3,555,000 in 2012, says RTA.
Class I railroad crosstie purchases are now estimated at 16,184,000 for 2011, compared to 16,379,000 last year. Total purchases this year are estimated at 20,247,000, up from 19,256,000 in 2010. RXTA expects total purchases to rise slightly to 20,924,000 in 2012.
