Short Line Railroads Receive Renewed Tax Credits and New Express Loan Program

This article has been reprinted from the Jan. 9 USDA Grain Transportation Report.

In December, Congress extended the short line railroad tax credit (45G) through 2022.

Capped at $3,500 per track mile annually, the credit grants an amount of 50 cents for each private dollar invested in qualified track maintenance and railroad infrastructure projects.

The tax credit is expected to aid in deferred track maintenance for the short line rail industry.

Also, a new Department of Transportation pilot program—the Rail Rehabilitation and Improvement Financing Express Program (RRIF Express)—aims to reduce the time and costs associated with securing RRIF loans through lower rates, waived risk premiums, fee assistance, and expedited loan processing.

Short line and regional railroads originate or terminate over 10 percent of the railed grain and soybean tonnage.

For more information on short line agriculture transportation and assistance programs, see the 2018 cooperative research between USDA and Kansas State University.