Short Line Connector - Fall 2016 - 15


MOMENTUM
BUILDING
FOR
45G

Support continues to
grow for the 45G tax
credit, and ASLRRA
is leading the charge
for permanency.
BY KATHY KEENEY

The 45G tax credit has
allowed short line railroads
the opportunity to make
significant investments
in infrastructure.

TO THE UNINITIATED, 45G might
sound like an apartment number in a
high-rise building or a high-speed digital network, but it's actually a business
incentive that's critical to the fundamental
success of small railroads.
Much like 401(k) in the retirement
planning world, 45G is shorthand, in this
case for the provision in the U.S. tax code
that allows a very important infrastructure
maintenance tax credit for the short line
industry. The short line railroad track
maintenance credit provides short line and
regional railroads a 50 cent tax credit for
each dollar the railroad spends on track
rehabilitation and maintenance, up to
$3,500 per mile of track owned or leased
by the railroad, allowing small railroads to
spend more of their revenue rehabilitating
the infrastructure that serves as a critical
transportation connection for local shippers across the country.
One of the American Short Line and
Regional Railroad Association's biggest

legislative victories late last year was
Congress' renewal of the tax credit for
2016. That one step empowered many
short lines to move forward on investments that pay for critical infrastructure
improvements, including ties and fasteners, track, ballast and bridges.

45G Basics
In January 2005, Congress enacted the
Railroad Track Maintenance Tax Credit
- section 45G of the U.S. tax code. This
legislation allows shippers, contractors and
suppliers of short line railroads to transfer
credits against the total amount of federal
taxes owed by their shippers, contractors
and suppliers under certain circumstances
and is based upon the investment made in
track maintenance and qualifying upgrades
to roadbeds, bridges and other related
railroad structures. Short line railroads
created before Jan. 1, 2015, are eligible to
receive this credit, which is capped using a
mileage-based formula.

FALL 2016 // SHORT LINE CONNECTOR

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Table of Contents for the Digital Edition of Short Line Connector - Fall 2016

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Short Line Connector - Fall 2016 - Cover1
Short Line Connector - Fall 2016 - Cover2
Short Line Connector - Fall 2016 - No label
Short Line Connector - Fall 2016 - 2
Short Line Connector - Fall 2016 - 3
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Short Line Connector - Fall 2016 - Cover3
Short Line Connector - Fall 2016 - Cover4
http://www.nxtbook.com/ygsreprints/ASLRRA/summer19
http://www.nxtbook.com/ygsreprints/ASLRRA/spring19
http://www.nxtbook.com/ygsreprints/ASLRRA/winter19
http://www.nxtbook.com/ygsreprints/ASLRRA/fall18
http://www.nxtbook.com/ygsreprints/ASLRRA/summer18
http://www.nxtbook.com/ygsreprints/ASLRRA/spring18
http://www.nxtbook.com/ygsreprints/ASLRRA/winter18
http://www.nxtbook.com/ygsreprints/ASLRRA/fall17
http://www.nxtbook.com/ygsreprints/ASLRRA/summer17
http://www.nxtbook.com/ygsreprints/ASLRRA/FactsAndFigures
http://www.nxtbook.com/ygsreprints/ASLRRA/spring17
http://www.nxtbook.com/ygsreprints/ASLRRA/winter17
http://www.nxtbook.com/ygsreprints/ASLRRA/fall16
http://www.nxtbook.com/ygsreprints/ASLRRA/summer16
http://www.nxtbook.com/ygsreprints/ASLRRA/spring2016
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