Washington, D.C. – Today, Congressman Darin LaHood (IL-16), Congressman Brad Schneider (IL-10), and 39 additional original cosponsors reintroduced the Freight RAILCAR Act of 2025. This legislation creates a tax credit to encourage the replacement and modernization of the U.S. freight railcar fleet. This will lead to a renewed investment in higher capacity, fuel-efficient freight railcar manufacturing in the United States.
The Freight RAILCAR Act of 2025 would provide a nonrefundable 10 percent tax credit for the replacement or modification of existing railcars over a three-year period. The credit is limited to 1,000 new freight cars per taxpayer and existing railcars must have been in service during the 48 months prior to enactment.
“Illinois’ rail network is a vital economic driver that impacts agriculture, manufacturing, and our local communities,” said Rep. LaHood. “I am proud to reintroduce the Freight RAILCAR Act of 2025 alongside Rep. Schneider to spur job growth and strengthen the United States’ infrastructure. Not only will this legislation improve the efficiency of railcars, but it will address supply chain constraints and support American manufacturing jobs.”
“Our rail network is crucial for commuters, farmers, and manufacturers all across Illinois and any weakness in that network is not only a short-term inconvenience but has long term consequences for our supply chain,” said Rep. Schneider. “I am proud to introduce this legislation with my colleague, Rep. LaHood, so we can bring our rail fleet into the 21st century and promote quality, well-paying jobs in the rail sector.”
“We applaud Rep. LaHood and Rep. Schneider for their leadership on the Freight RAILCAR Act of 2025,” said Erik Olson, Executive Director of the Rail Security Alliance. “This important measure would help build a more sustainable freight railcar fleet and help position the industry to address supply chain constraints, giving a boost to boost an industry that provides for the movement of critical goods across the country every day.”
Background:
The current North American railcar fleet is comprised of more than 1.6 million railcars with approximately 321,000 in storage.
According to the most recent data available, in 2023, the railway supply industry contributed $75 billion to U.S. GDP and directly provided 240,000 U.S. jobs.
In Illinois, the railway supply directly employs more than 18,000 people and has a significant contribution to Illinois’ GDP.
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