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A bill seeking to further extend the short-line tax credit entered Congress last month. On Feb. 14, U.S. Reps. Lynn Jenkins (R-Kan.), Earl Blumenauer (D-Ore.), Rodney Davis (R-Ill.) and Dan Lipinski (R-Ill.) introduced the Short Line Railroad Rehabilitation and Investment Act of 2013 (H.R. 721), according to the American Short Line and Regional Railroad Association.

The bill proposes to extend the Section 45G short-line rehabilitation tax credit through Dec. 31, 2016. H.R. 721 also would enable short lines created after Jan. 1, 2005, and before Jan. 1, 2013, to be eligible to claim the tax credit.

In addition, the legislation would maintain the credit cap at $3,500 per mile. The Section 45G provision enables short lines to claim a tax credit of 50 cents for every dollar invested in track rehabilitation, up to a cap equal to $3,500 times the railroad's total track miles.

The bill, which has six co-sponsors, was referred to the House Ways And Means Committee.

Earlier this year, the short-line tax credit was made retroactive through 2012 and extended through 2013 as part of the "fiscal cliff" legislation. The credit is scheduled to expire on Jan. 1, 2014.