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Big news for Ontario, and something long overdue:
Ontario introduces tax credit for short lines

It is no secret that Ontario's shortlines have struggled over the years. Policy measures to support the industry are very welcome, especially in the face of the structural imbalances which hinder first/last mile freight by rail. This tax credit emulates similar measures taken by several US States and Canadian Provinces. Some details of the measure are as follows:

Ontario government officials have introduced in the province's 2025 budget a tax credit for short lines that invest in track maintenance and rehabilitation projects.
The measure calls for a 50% refundable corporate income tax credit for qualifying short lines' eligible track maintenance and rehab projects in Ontario. The tax credit would provide the province's short-line industry with an estimated C$23 million in income tax support over three years.
In Ontario, every dollar invested through the tax credit is projected to generate C$10.58 in economic output, according to RAC. There are over 621 miles of short-line tracks in Ontario.

Edit: Full text can be found here:


The credit would be limited to $8,500 per track mile in Ontario and would be available for eligible expenditures made on or after May 15, 2025, and before January 1, 2030.
The credit would be available to corporations that are licensed provincially under the Shortline Railways Act (Ontario) or federally (Class II & III) under the federal Railway Safety Act that make eligible expenditures and that have a permanent establishment in Ontario. This would exclude urban rail transit systems and industrial railways.
Eligible capital investments would be expenditures in Ontario for certain railway-related capital property included in Classes 1, 3 or 13 for CCA purposes, as well as labour expenditures for railway-related maintenance.
 
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Big news for Ontario, and something long overdue:
Ontario introduces tax credit for short lines

The tax credit has a limit of $8500 per track mile.

To put that in perspective - At $200 a tie, the credit at maximum will buy about 40 ties per mile. Over a thirty year period, that's enough crossties to pretty much keep up with tie renewal..

Ties are only one of many maintenance expenses, but that's a meaningful contribution to keeping short lines in good condition.

- Paul
 
The tax credit has a limit of $8500 per track mile.

To put that in perspective - At $200 a tie, the credit at maximum will buy about 40 ties per mile. Over a thirty year period, that's enough crossties to pretty much keep up with tie renewal..

Ties are only one of many maintenance expenses, but that's a meaningful contribution to keeping short lines in good condition.

- Paul
Does this mean we could see the overall speeds increase on these lines? Many are limited to under 25mph.
 
Teams in the UK are trying to develop a Very Light Rail demonstration. They claim that installation of track will only require 30cm excavation, and "most existing road structures will provide sufficient support, enabling integration with minimal disruption to surrounding infrastructure". So, fewer pipe relocations will be needed and the overall project cost will drop significantly. This seems to be closer to the 19th century tram, but with modern capabilities like air cooling, than recent "Light Rail Vehicles" which are actually quite heavy and need a deep track bed.

If successful, this could support a new class of rail service that would compete with BRT or share BRT corridors.
 
Teams in the UK are trying to develop a Very Light Rail demonstration. They claim that installation of track will only require 30cm excavation, and "most existing road structures will provide sufficient support, enabling integration with minimal disruption to surrounding infrastructure". So, fewer pipe relocations will be needed and the overall project cost will drop significantly. This seems to be closer to the 19th century tram, but with modern capabilities like air cooling, than recent "Light Rail Vehicles" which are actually quite heavy and need a deep track bed.

If successful, this could support a new class of rail service that would compete with BRT or share BRT corridors.
The LR55 track concept has been around for a long time but has generated a lot of press releases than service. Those with long memories will recall the same proponents bidding on the TTC streetcar replacement.
 
Alstom have started testing NJ Transit’s Multilevel III EMUs at TTCI.

 

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