Kerry Wins Inclusion of $2 Billion to Modernize Rail System, Create JobsWASHINGTON, D.C. – A provision authored by Senator John F. Kerry (D – Mass.) to modernize our transportation system and create hundreds of desperately needed jobs was included in the final version of the economic recovery package that passed the Senate today by a vote of 61 to 37. Kerry is a senior member of the Senate Finance Committee where the legislation originated.
“The high speed rail provision will create jobs, fix our crumbling infrastructure, and move our rail systems up to par with the high-tech rail systems across the globe,” said Kerry. “This is a job creator now and an investment that will continue to pay off tomorrow.
“This bill is one big step toward digging out of a deep, deep economic hole and it’s an investment in the jobs and relief Americans need to break this downward cycle,” Kerry continued. “This is a down payment towards a comprehensive solution that addresses the economic, financial, housing, and credit crises. I look forward to working with our House colleagues to reconcile our two plans and send a bill to the President as quickly as possible.
“It said everything about the importance of this moment that Sen. Kennedy returned to the Senate to cast his vote for a new economic direction,” Kerry added. “Ted knows the importance of this legislation for Massachusetts and our country, and once again he is always in the thick of the fight when peoples’ jobs are on the line. After a week of delay and debate and a legislative process that sometimes frustrates us and enrages the country, Teddy’s presence summed up what really matters and what’s really worth fighting for."
The bill includes $2 billion for grants for investments in high-speed rail corridors. The rail provision allows transit projects to receive tax-exempt financing and requires that high-speed trains must be reasonably expected to reach 150 miles per hour. The bill also includes a provision modeled after Kerry’s legislation that would exempt interest from private activity bonds from the Alternative Minimum Tax, including interest from high-speed rail bonds. This change would make bonds more attractive to investors.
Last November, Senators Kerry and Specter introduced the High-Speed Rail for America Act of 2008, which would transform America’s outdated and underfunded passenger rail system into a world class system.
The following is the full list of provisions included in the American Recovery and Reinvestment Act of 2009 that were authored by or previously introduced by Senator John Kerry:- HIGH SPEED RAIL: As a result of Senator Kerry’s work, the bill includes $2 billion for grants for investments in high-speed rail corridors. The rail provision allows transit projects to receive tax-exempt financing and requires that high-speed trains must be reasonably expected to reach 150 miles per hour. The bill also includes a provision modeled after Kerry’s legislation that would exempt interest from private activity bonds from the Alternative Minimum Tax, including interest from high-speed rail bonds. This change would make bonds more attractive to investors. Investments in high-speed rail can be used to help make necessary improvements to the Northeast corridor.
- EARNED INCOME TAX CREDIT (EITC): Senator Kerry secured two reforms to the Earned Income Tax Credit (EITC) that will decrease the penalty for married couples and increase the tax credit for families with three or more children. This means more money in the pockets of the people of Massachusetts.
- ALTERNATIVE MINIMUM TAX (AMT): A provision included in the bill will exempt private activity bonds from the Alternative Minimum Tax (AMT). This provision is based on S. 138, legislation authored by Kerry. As many as 27 percent of Massachusetts taxpayers would be impacted by the AMT without Congressional action.
- INVEST IN SMALL BUSINESSES ACT: A bill sponsored by Senator Kerry to increase the 50 percent capital gains exclusion to 75 percent for investment in small businesses was included in the recovery package. This provision will help with investment in start-ups on the breaking edge of green technology and bio technology.
- RENEWABLE ENERGY AND CONSERVATION: Senator Kerry played a key role in securing energy tax provision increases to include a long term extension of provisions that provide tax incentives for the production of renewable energy and tax credits for conservations.
- COLLEGE EDUCATION TAX CREDIT: The bill includes an education tax credit similar to the credit in Senator Kerry’s “College Opportunity Tax Credit Act of 2009,” which helps students and parents afford all four years of college. The provision would create a $2,500 higher education tax credit that is available for the first four years of college and a portion of the credit is refundable.
- INDUSTRIAL DEVELOPMENT BOND (IDB) PROGRAM: A provision introduced by Senators Kerry and Snowe (R – ME) to expand the Industrial Development Bond (IDB) program to high-technology and biotechnology uses. The small-issue IDB program has given state and local governments a low-cost source of financing to create and retain jobs in manufacturing plants.
- SMALL BUSINESS LENDING: A plan introduced by Senators Kerry and Schumer (D – N.Y.) to provide $730 million to stimulate lending to small businesses was included in the recovery package.
- PLUG-IN HYBRID: The legislation provides a ten percent credit for 2-wheeled and 3-wheeled vehicles and increases the number of eligible vehicles for the plug-in credit from 250,000 to 300,000. In addition, it provides a ten percent for battery modules which convert a hybrid to a plug-in hybrid.
- YOUTHBUILD: Senator Kerry secured $100 million for YouthBuild programs nationwide. YouthBuild provides critical job skills to at risk 16 to 24 year olds. The program’s participants also help build quality, affordable housing in communities that desperately need it. As a result of this funding more young people will be able to participate in YouthBuild.
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