Idaho senator pushes short line railroad tax breaks
WASHINGTON D.C. (KIFI/KIDK) - A package of incentives for short-line railroad operators will be included in the year-end spending bill being considered by the Senate this week. The House passed the bill Tuesday.
Idaho Senator Mike Crapo pushed for the Section 45 G tax incentives, which encourage and support investment in short-line railroad service across Idaho, including Idaho Falls, Burley, Twin Falls, Boise, Cottonwood, St. Maries, Bovill, Spalding, Harvard, Moscow and Lewiston.
Watco Companies operates the Boise Valley Railroad, Eastern Idaho Railroad, and Great Northwestern Railroad. Crapo said Eastern Idaho Railroad used the 45G tax incentives to increase shipping options and create new jobs in the Burley area.
"Short line rail is like economic bread and butter, working with Idaho farmers and industry," Crapo said "It has been great to see the economic expansion efforts in Burley and across Idaho and witness first-hand the job creation this critical industry brings to Idaho and the nation. We need to prioritize this energy-efficient way to moving goods to market into the future."
Since 2017, the 45G short line tax credit helped generate over $22 million in additional infrastructure projects, according to Watco Companies Vice President Laura McNichol.
Crapo said Price- Waterhouse-Cooper analysis shows short line railroads and their suppliers support more than 61,000 jobs in the U.S. and add $6.5 billion annually to the country's economy.
