{"id":1862,"date":"2020-09-23T15:28:01","date_gmt":"2020-09-23T15:28:01","guid":{"rendered":"https:\/\/pflpetroleum.com\/reports\/?p=1862"},"modified":"2023-06-08T13:31:37","modified_gmt":"2023-06-08T17:31:37","slug":"railcar-scrapping-is-back","status":"publish","type":"post","link":"https:\/\/pflpetroleum.com\/reports\/railcar-scrapping-is-back\/","title":{"rendered":"Railcar Scrapping is Back!"},"content":{"rendered":"\n

As the economy is still in flux, with questions still in the air of when everything will return to normal, car owners are beginning to cull their fleets to better suit the current and future demand. Railcar scrapping, also referred to railcar dismantling or decommissioning, is becoming a popular option in cases where selling or leasing the railcars doesn’t make economic sense. <\/p>\n\n\n

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Pictured above is a member of the PFL Mobile Scrapping team cutting a railcar frame.<\/figcaption><\/figure>\n<\/div>\n\n\n

Why should I scrap my railcars?<\/h3>\n\n\n\n

Every railcar has a finite lifespan and even with reconditioning there comes a time when they are no longer serviceable. Another issue you may run into is antiquated railcar types that new regulations made them unserviceable. Whether its for your specific commodity or in general. COVID-19 also created a new issue where demand for certain products have been destroyed leaving many car owners to find storage for cars that they may not be able to use. This unfortunately causes them to incur a plethora of costs. Even while in storage these cars need to be maintained as bearings dry from lack of use, air brakes need to be inspected, etc. If these scenarios sound familiar, it may be time to start considering scrapping.<\/p>\n\n\n\n

H.R. 8082 Tax Credit<\/h3>\n\n\n\n

One of the many reasons railcar scrapping makes a lot of sense for businesses with old railcars is the new tax credit. This piece of new legislation provides a tax credit for purchasing new freight cars and removing old cars from service. <\/p>\n\n\n\n

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To amend the Internal Revenue Code of 1986 to provide a tax credit to encourage the replacement or modernization of inefficient, outdated freight railcars, and for other purposes.<\/p>\nCite: Congress<\/a><\/cite><\/blockquote>\n\n\n\n

Qualified railcars can earn a 50% tax credit. <\/p>\n\n\n\n

What railcars qualify for the H.R.8082 tax credit?<\/h3>\n\n\n\n