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2/12/2025
U.S. Reps. Darin LaHood (R-Ill.) and Brad Schneider (D-Ill.) yesterday announced they've reintroduced the Freight RAILCAR Act of 2025 (H.R. 1200), a bill that would create a tax credit to encourage the replacement and modernization of the U.S. freight-car fleet.
The legislation is intended to lead to a renewed investment in higher capacity, fuel-efficient freight-car manufacturing in the United States, the lawmakers said in a press release.
Specifically, the bill calls for a nonrefundable 10% tax credit for the replacement or modification of existing rail cars over a 3-year period. The credit is limited to 1,000 new freight cars per taxpayer and existing rail cars must have been in service during the 48 months prior to enactment.
"Not only will this legislation improve the efficiency of rail cars, but it will address supply chain constraints and support American manufacturing jobs," said LaHood.
The legislation also features a security element, according to the Rail Security Alliance (RSA), which supports the bill.
"This bill is key to ensuring American economic and national security. It not only supports our domestic freight rail-car manufacturing and supply industry and the jobs tied to the sector, but guarantees supply chain reliability and the ability to move goods on U.S. made rail assets,” said RSA Executive Director Erik Olson in a press release.
The legislation was introduced in the last Congress, but did not pass. H.R. 1200 was referred to the House Committee on Ways and Means.