Peoria Standard

Today, U.S. Representatives Darin LaHood and Brad Schneider, along with 39 other original cosponsors, reintroduced the Freight RAILCAR Act of 2025 in Washington, D.C. The legislation aims to incentivize the replacement and modernization of the U.S. freight railcar fleet through a tax credit system.

The proposed act would offer a nonrefundable 10 percent tax credit for replacing or modifying existing railcars over three years. This credit is capped at 1,000 new freight cars per taxpayer, with eligibility requiring that current railcars have been operational within the last 48 months before enactment.

"I am proud to reintroduce the Freight RAILCAR Act of 2025 alongside Rep. Schneider to spur job growth and strengthen the United States’ infrastructure," stated Rep. LaHood. He emphasized that the legislation will not only enhance railcar efficiency but also address supply chain issues and support American manufacturing jobs.

Rep. Schneider highlighted the importance of Illinois' rail network for various sectors including commuters, farmers, and manufacturers. "I am proud to introduce this legislation with my colleague, Rep. LaHood," he said, noting its potential to modernize the rail fleet and promote quality jobs in the sector.

Erik Olson from the Rail Security Alliance expressed support for the initiative: "We applaud Rep. LaHood and Rep. Schneider for their leadership on the Freight RAILCAR Act of 2025." He pointed out that it would contribute to building a sustainable freight railcar fleet while addressing supply chain constraints.

Currently, North America's railcar fleet includes over 1.6 million units with about 321,000 in storage. In 2023 alone, data showed that the railway supply industry added $75 billion to U.S GDP and directly supported 240,000 jobs nationwide. In Illinois specifically, this sector employs more than 18,000 people contributing significantly to its GDP.