US rail industry applauds new ‘green’ railcar act

WASHINGTON, D.C. — Representatives of the US rail industry are commending the introduction of The Green Railcar Enhancement Act of 2010, co-sponsored by and supported by more than 50 members of Congress.

“This legislation will help revitalize the US freight car manufacturing industry, generate between 30,000 and 50,000 jobs nationwide, and stimulate the adoption of ‘green’ technology enhancements in only two years,” said James Unger, vice-chairman of the American Railcar Industries, and spokesman for the American Railcar Institute Committee (ARCI) of the Railway Supply Institute (RSI). 

The Green Railcar Enhancement Act of 2010 provides a 25% tax credit for replacing or rebuilding old, inefficient railcars. The tax credit will be limited to cars built in 2010 and 2011 and would require a minimum of 8% increase in capacity or fuel efficiency. In effect, the legislation will shift market demand from 2012-14 to this year and next, which will help the freight car component supply industry survive the current economic crisis, according to ARCI officials. 

“The domestic freight car building and component supply industry has virtually collapsed. Approximately 54,000 jobs have been lost in the past 18 months alone. What’s more, the railcar fleet is aging rapidly and eventually will have to be replaced or rebuilt,” ARCI said in a release.

“For the sake of the railway supply industry in particular, and to prevent the further erosion of our domestic manufacturing base, ARCI urges swift consideration and passage of the Green Railcar Enhancement Act of 2010,” Unger said.