SENATE RESOLUTION No. 144

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED MAY 30, 2019

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

Senator  THOMAS H. KEAN, JR.

District 21 (Morris, Somerset and Union)

 

 

 

 

SYNOPSIS

     Urges US Congress to permanently extend federal tax credit for railroad track maintenance.

 

CURRENT VERSION OF TEXT

     As introduced.

  


A Senate Resolution respectfully urging the United States Congress to permanently extend the federal tax credit for railroad track maintenance undertaken by certain railroads.

 

Whereas, Under federal tax law, certain eligible taxpayers, including Class II and Class III railroads, which include short line railroads, are eligible for a tax credit for qualified railroad track maintenance expenditures paid or incurred during certain taxable years; and

Whereas, A person who transports property using Class II or Class III railroad facilities or who furnishes railroad-related property or services to a Class II or Class III railroad is eligible for the railroad track maintenance tax credit, but only for those miles of railroad track assigned to the person by the Class II or Class III railroad for certain purposes; and

Whereas, Under this federal law, qualified railroad track maintenance expenditures means, in part, gross expenditures for maintaining railroad track, including roadbeds, bridges, and related track structures; and

Whereas, According to the Surface Transportation Board, a Class II railroad has annual operating revenues of less than $447,621,226, but in excess of $35,809,698, and a Class III railroad has annual operating revenues of $35,809,698 or less; and

Whereas, Bills have been introduced in the United States Senate and the United States House of Representatives, S. 203 and H.R. 510 respectively, to permanently extend the tax credit for railroad track maintenance, which would apply to expenditures paid or incurred during tax years beginning after 2017; and

Whereas, Approximately one Class II railroad and seven Class III railroads operate in New Jersey; and

Whereas, These railroads provide local businesses and shippers with vital access to the national rail network and, by extension, to national and global economies; and

Whereas, The railroad track maintenance tax credit encourages Class II and Class III railroads, including short line railroads, to invest their revenues into railroad infrastructure, which, in turn, increases efficiency, supports jobs, and improves safety; and

Whereas, It is important that this tax credit be permanently extended to ensure a safe and reliable rail network in the State of New Jersey and throughout the nation; now, therefore,

 

     Be It Resolved by the Senate of the State of New Jersey:

 

     1.    This House respectfully urges the United States Congress to pass legislation, currently pending before the United States Senate as S. 203 and before the United States House of Representatives as H.R. 510, to permanently extend the federal tax credit for railroad track maintenance for Class II and Class III railroads.

     2.    Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, the sponsor of S. 203, the sponsor of H.R. 510, the Chairman of the United States Senate Committee on Finance, the Chairman of the United States House of Representatives Committee on Ways and Means, and every member of Congress elected from this State.

 

 

STATEMENT

 

     This resolution respectfully urges the United States Congress to permanently extend the federal tax credit for railroad track maintenance in order to ensure a safe and reliable rail network by encouraging Class II and Class III railroads, including short line railroads, to invest their revenues into railroad infrastructure.