State launches freight rail tax credit to boost business in coal transition communities
Governor Jared Polis and the Colorado Office of Economic Development and International Trade have announced a new Freight Rail Tax Credit program aimed at revitalizing freight rail lines in communities impacted by coal plant closures, according to a statement released on Thursday.
The program, established by Senate Bill 24-190, is designed to diversify economic activity in the Yampa Valley by incentivizing use of Union Pacific’s Craig Branch Line, which serves Routt, Moffat and Rio Blanco counties.
Qualified businesses that utilize the Craig Branch Line for freight rail transportation can receive up to 75% of eligible rail-related expenses, such as railroad fees, transloading costs and infrastructure investments, through annual tax credits totaling up to $5 million statewide. The program launches this year and is expected to end before 2036.
“As the economy moves away from the high cost of coal power, Colorado is focused on saving people money and supporting local job creation and business growth,” said Governor Polis in the statement. “This initiative will encourage the continued use of existing rail lines, increase business activity in northwest Colorado and set the stage for passenger rail.”
The Colorado Department of Transportation will annually review the program to determine if additional freight rail corridors should be included.
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