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Bipartisan Effort Would Impact Short Line Railroads in Luzerne, Lycoming, Philadelphia and Allegheny Counties Among Others

Washington DC- Today, U.S. Senator Bob Casey (D-PA) announced that following his efforts, Congress’ tax extenders bill that is set to become law following Senate passage contains a tax incentive that will boost Pennsylvania’s short line railroads. The bipartisan bill would impact Short Line railroads in places like Luzerne, Lycoming, Philadelphia and Allegheny Counties among others. It would allow these Short Line railroads to deduct up to 50% of investments made in track repair.

“Short Line railroads help businesses across Pennsylvania move their goods,” Senator Casey said. “Renewing this tax credit will allow railroad companies to upgrade their infrastructure so that rail continues to have a role in boosting the Commonwealth’s economy.”   

Short line railroads are branches of lines of larger railroads that were spun off to be the on and off ramps to the railroad network. A tax credit will be given for every 50 cents of every dollar that a customer or supplier spends on rail improvements, allowing small railroad companies to deduct up to 50% of investments made in track repair and other qualifying investments. There are 10 Short Line Railroad carriers operating in Pennsylvania that save the government millions of dollars in highway costs. The tax credit act originated with the American Jobs Creation Act of 2004, expired in January 2008, but was retroactively applied to extend through January 2012. 

This bill will retroactively extend the Section 45G Short Line Railroad tax credit that is expired in December 31, 2013.

Pennsylvania Short Line Railroads

Allegheny Valley Railroad

  • Brandywine Valley Railroad
  • Chestnut Ridge Railway Company
  • Conemaugh & Black Lick Railroad
  • East Erie Commercial RailroadKnox & Kane Railroad
  • Luzerne & Susquehanna Railroad
  • Lycoming Valley Railroad

Middletown & Hummelstown Railroad

  • New Castle Industrial Railroad


New Hope & Ivyland Railroad


Oil Creek & Titusville Lines


North Shore Railroad System

  • Philadelphia, Bethlehem & New England Railroad
  • Pittsburgh, Allegheny & McKees Rocks Railroad


Reading & Northern Railroad


Southwestern Pennsylvania Railroad

  • Steelton & Highspire Railroad
  • Turtle Creek Industrial Railroad
  • Tyburn Railroad


Union Railroad

  • Upper Merion & Plymouth Railroad