by North Forty News Staff | NorthFortyNews.com
New initiative supports freight use on Craig Branch Line, paving the way for future passenger rail in Northwest Colorado
CRAIG, Colo. — The Polis Administration has launched a new state initiative aimed at revitalizing the economy of Colorado’s coal transition communities—starting with the Union Pacific’s Craig Branch Line in Northwest Colorado. The newly established Freight Rail Tax Credit program will provide up to 75% in tax credits for businesses that increase or establish freight rail use in regions affected by coal plant closures.
Designed to stimulate business investment and preserve vital transportation infrastructure, the program will initially focus on communities in the Yampa Valley—Moffat, Rio Blanco, and Routt counties—where economic diversification is essential as coal-fired plants and mines wind down operations.
“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 Jared Polis. “This initiative will encourage the continued use of existing rail lines, increase business activity in northwest Colorado, and set the stage for passenger rail.”
Under Colorado Revised Statute 39-22-563 and established by SB24-190, the Freight Rail Tax Credit will help cover costs such as railroad fees, transloading, and rail infrastructure development. Businesses that transport freight on the Craig Branch Line are eligible, with the program allocating up to $5 million in credits annually from 2025 through 2036.
“The Craig Branch Line has long been a key economic artery,” said Eve Lieberman, Executive Director of the Colorado Office of Economic Development and International Trade (OEDIT). “Supporting its continued use will ensure that Northwest Colorado communities thrive and remain connected.”
The initiative is managed by OEDIT in collaboration with the Colorado Department of Transportation (CDOT) and the Office of Just Transition (OJT). CDOT will conduct annual evaluations to determine if additional freight rail lines should be added to the program.
Local governments are already signaling support for broader passenger rail development. The City of Craig, Town of Hayden, Routt County, and City of Steamboat Springs have passed resolutions in favor of CDOT’s Mountain Rail project and have committed to coordinating on future station development.
“This program brings new jobs and makes passenger rail from Craig to Denver a realistic goal by the end of the decade,” said State Senator Dylan Roberts. Representative Meghan Lukens added, “Increased rail revenue from freight makes passenger rail more affordable and opens doors for business growth on the Western Slope.”
The Freight Rail Tax Credit is part of a larger, ongoing state effort to ease the transition for coal-dependent communities. To date, OEDIT and OJT have distributed over $11 million in funding to support new business development and job creation, including nearly $8 million specifically in northwest Colorado.
For more details about the Freight Rail Tax Credit and eligibility, visit the official program website.
Source: Colorado Office of Economic Development and International Trade (OEDIT)