Bill would extend short‑line railroad tax credit and raise per‑mile amount to $5,000

Representative Hagan presented House Bill 1070 (L.C. 394886) to the Income Tax Subcommittee of the Ways & Means Committee, asking to extend a short‑line railroad maintenance tax credit (originally enacted in 2018) by five years and to increase the per‑mile credit from $3,500 to $5,000.

Hagan said the credit targets class‑3 short‑line railroads and is intended to accelerate rail infrastructure investment in rural Georgia and to support freight movement tied to port expansion in Savannah. He provided industry cost examples, including testimony that installing new rail can cost about $3,000,000 per mile and that annual maintenance and related capital intensity are high for short lines.

Industry witnesses overwhelmingly supported the measure. Justin Strickland of OmniTrax said OmniTrax operates multiple short lines in Georgia and spent more than $11,000,000 on maintenance last year; he told the committee the credit “allows for us to provide continual reinvestment in a permanent infrastructure.” Joe Santoro of the Georgia Transportation Alliance and Ben Wright of the Georgia Railroad Association also testified in support, citing freight‑tonnage growth forecasts and the sector’s role in local economies. Craig Camuso of CSX testified that while CSX does not directly receive the credit, short lines act as critical connectors to the mainline network.

A member asked whether a fiscal note existed; the sponsor cited an Office of Planning and Budget (OPB) estimate of roughly $6,000,000 annually for the current year. Committee members probed transferability of credits and whether recipients typically claim them or transfer them; OmniTrax responded that both occur depending on the company’s taxable income in any given year. Members also questioned what would happen without the credit; witnesses warned some short lines could be forced to curtail operations or shut down because maintenance and bridge work are expensive.

Committee discussion enumerated maintenance items—ballast, cross ties, new rail, bridge repairs—and included a witness‑given example of maintenance costs described on record as about $2,020,000 per mile annually. The sponsor said the bill will receive a second hearing; no committee vote was taken today.

What’s next: HB 1070 was heard for the first time; the committee requested confirmed fiscal estimates and clarifications on sunset dates and the bill’s statutory language before further consideration.