Rail Service Act and Year-End Tax Breaks
Here’s the latest from our friends at the Hardwood Federation.
Wisconsin Senator Introduces Reliable Rail Service Act
On September 27, Sen. Tammy Baldwin (D-WI) introduced the Reliable Rail Service Act, a bill to help untangle supply chain bottlenecks plaguing the hardwood industry and other shippers around the country. The bill aims to codify requirements that rail carriers provide service to a broad swath of users, including the hardwood sector, “on reasonable request.” While a path forward for the bill is limited this year, the legislation lays down an important marker to be picked up in 2023 when a new Congress convenes and considers measures to re-balance the nation’s supply chains.
“Lame Duck” Congress Will Look at End-of-Year Tax Breaks
One of the agenda items for Congress after the election will be to consider an extension of a variety of tax breaks that are due to expire on December 31. This includes 100% “bonus depreciation of equipment,” a tax break enshrined in the tax reform law of 2017 that incentivizes investment in sawmills and other manufacturing facilities. Momentum for an end-of-year tax package is building, especially as industry groups, including the National Association of Manufacturers, send letters urging Congress to act when they return after the mid-term elections.