On Wednesday, U.S. Rep. Mike Kelly, R-16th, in his capacity as chairman of the Ways & Means Subcommittee on Tax, introduced the Short Line Railroad Tax Credit Modernization Act in partnership with U.S. Rep. Earl Blumenauer, D-Or.

The proposed legislation would make permanent the Railroad Track Maintenance Tax Credit, a federal income tax credit for regional shortline railroads that went into effect in January 2005. Initially set to expire at the end of 2009, it was repeatedly extended before expiring at the end of 2017.

The tax credit would enable regional and shortline railroads to claim a 50-cent tax credit for each dollar spent on rehabilitation and maintenance projects, which would encourage such projects.

The two previously introduced similar legislation in 2019.