Railroads want tax incentives to expand capacity

Railroads want tax incentives to expand capacity    Norfolk Southern Corp.'s top official called for tax incentives to expand freight rail capacity in testimony before the House Ways and Means Subcommittee on Select Revenue Measures.
   “America needs more transportation capacity and needs it now,” said Wick Moorman, chief executive officer, in testimony offered on behalf of the Association of American Railroads. He said today’s transportation network is not designed to handle the doubling in freight demand projected by 2035.
   “Railroads are the most affordable and environmentally responsible way to meet this demand, and that is why tax incentives for rail capacity would be good public policy,” he said.
   The hearing was held to gather information on financing options for a six-year, $500 billion surface transportation reauthorization bill intended to reshape policy and fund highway, safety, rail and transit programs. The railroad industry has spent the past three years lobbying for a 25 percent tax credit for qualifying infrastructure expansion projects.

Moorman

   Moorman said railroads spent $10.2 billion on capital improvements last year and $440 billion since 1980 to maintain, improve, and expand their networks. But he said a recent study found a $52 billion gap between the $148 billion needed for expanding freight rail capacity and the $96 billion railroads could expect to generate.
   “As much as railroads are investing, it isn’t enough to meet projected demand,” he said, contending tax incentives “provide a sensible way to help bridge this gap.”
   This testimony can be found here.