Lawmakers LaHood and Schneider have introduced the Freight RAILCAR Actto modernize the freight rail industry. This bill promotes rail efficiency, strengthens supply chains, and supports U.S. manufacturing. This was reported by the railway transport news portal Railway Supply.

Lawmakers LaHood and Schneider have introduced the Freight RAILCAR Actto modernize the freight rail industry.
The bill calls for a nonrefundable 10% tax credit for the replacement or modification of existing rail cars over a 3-year period.
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Freight RAILCAR Act: Driving Rail Modernization

The proposed legislation establishes a 10% tax credit for upgrading outdated freight rail cars. The incentive applies over three years, allowing claims on up to 1,000 new rail cars per taxpayer.

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To qualify, existing rail cars must have been in operation for at least 48 months before enactment. Lawmakers believe this initiative will drive investment in fuel-efficient, high-capacity freight car production.

Economic and Security Benefits of the Freight RAILCAR Act

Representative LaHood stated that this bill improves efficiency, reduces supply chain disruptions, and protects American jobs. Schneider emphasized that modernizing freight infrastructure benefits businesses and economic growth.

The Rail Security Alliance (RSA) strongly supports the legislation, citing its role in protecting national security. They stress that strengthening U.S. freight rail ensures reliable domestic supply chains and infrastructure.

RSA Executive Director Erik Olson highlighted the bill’s impact on American rail manufacturing. He argued that securing supply chains requires consistent investment in domestically built rail assets.

Though previously introduced in Congress, the legislation did not pass but has now been reintroduced. Lawmakers believe bipartisan collaboration will help move the bill forward successfully.

By modernizing rail infrastructure, this act fosters economic resilience, innovation, and environmental sustainability. Legislators are optimistic that their renewed efforts will lead to industry-wide improvements.

Source: www.progressiverailroading.com

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