May 08, 2025

Wyden, Crapo Introduce Legislation to Modernize Short Line and Regional Railroad Tax Credit

Washington, D.C. — U.S. Senator Ron Wyden, D-Ore., said today he has reintroduced legislation with U.S. Sen. Mike Crapo, R-Idaho, to expand the Short Line Railroad Tax Credit that provides operators with essential resources to ensure communities and small businesses can rely on safe infrastructure. 

The bipartisan Short Line Railroad Tax Credit Modernization Act would increase the tax credit available for track rehabilitation and maintenance from $3,500 per mile to $6,100 per mile. The bill would also make more tracks eligible for the credit. Under current law, eligibility is based on maps of track owned or leased by short line railroad operators as of 2015. The bill would expand eligibility to all tracks owned or leased as of 2025 and in accordance with modern maps. 

“Short line and regional railroads are not just a mode of transportation, they are also a vital economic tool that connects local businesses with Oregonians and other people all across the nation,” said Wyden. “For years, Senator Crapo and I worked together to make railroad tax credits permanent, and the next step is to make these tax credits better for our operators.  Our bipartisan bill will provide railroads with much needed resources to make vital upgrades that will bring our rural, suburban and urban communities and their local economies together.”

“Short line railroads are critical infrastructure that connect Idaho’s farmers, ranchers and manufacturers to national and global markets, supporting local jobs and driving economic growth in rural Idaho,” said Crapo. “Modernizing the Short Line Railroad Tax Credit will provide railroads with necessary certainty and resources to invest in safety, efficiency and long-term infrastructure improvements in our regional areas.” 

Text of the bill is here.