House reconsiders railroad tax credit by Andrea Skalland Railroads in the state will have some of their tax credits repealed.
The House passed a bill Feb. 9, to repeal some of the tax credit that is given to railroads.
Rep. John Koskan, R-Wood, proposed an amendment to the original bill that would repeal some but not all of the tax credits.
According to Koskan, the bill would require that for every $2 worth of investment to the line the railroad would receive $1 worth of credit. Currently, the railroad receives $1 for $1. The bill would also require the investments be made on the line for which the tax credits are given, he said.
?This will provide stability so we don�t have to fight year after year,� Koskan said.
Rep. Ron Volesky, D-Huron, opposed the original bill and the bill in its new form.
�The amendment goes half as far, but it is still too much,� Volesky said. �We need the investment from the railroad in our state.�
Rep. Pat Haley, D-Huron, said that the railroad paid its taxes, just not in the normal manner.
�(The tax credit) gives the railroad the opportunity to improve the infrastructure in the state, they give back in another way,� Haley said. �Let the railroads continue their work.�
The amended HB1106 passed with a vote of 42-26.
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