This week, a second railroad union voted down a proposed contract with the freight rail road sector which increases the risk that a nationwide strike could occur just before Thanksgiving. The Brotherhood of Railroad Signalmen, which is the third largest rail union, followed the Brotherhood of Maintenance of Way employees in rejecting the contract purportedly on grounds that it did not provide enough schedule flexibility. If all 12 railroad unions do not approve the contract, a strike could occur on November 19, unless Congress intervenes.
To that end, ABMA joined with hundreds of other trade groups in urging President Biden to intervene. That letter may be found here. In addition, ABMA will be monitoring developments closely and reaching out to our champions in the House and Senate for Congressional intervention should the situation warrant. We will keep you apprised of our efforts.
Also this week, ABMA sent a letter to leadership of the House and Senate tax writing committees urging Congressional action to extend the full expensing tax benefit that was authorized by the Tax Cuts and Jobs Act in 2017. Bonus depreciation, as it is known, allows a business to deduct the entire cost of capital improvements in the same tax year the expense is incurred. Currently that deduction is 100 percent, but is scheduled to ratchet down to 80 percent in 2023 and decrease 20 percent each subsequent year until phasing out completely in 2027. ABMA will be working in the Lame Duck Congressional session to extend 100 percent bonus deprecation through at least 2023. This tax benefit is utilized by businesses across the economy and we will be working in conjunction with other trade groups in advocating for meaningful extension of this critical tax benefit. ABMA’s letter may be found here.