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A black plume rises over East Palestine, Ohio, as a result of a controlled detonation of a portion of the derailed Norfolk Southern trains on Monday, Feb. 6, 2023.
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Residents hurt by East Palestine derailment would get tax break under House-passed bill

ASSOCIATED PRESS

Residents hurt by East Palestine derailment would get tax break under House-passed bill

Legislation would prevent residents from having to pay taxes on any compensation

WASHINGTON — Residents living near the site of the East Palestine train derailment wouldn’t have to pay taxes on their share of the $600 million to be paid by Norfolk Southern under legislation awaiting U.S. Senate action.

The U.S. House overwhelmingly voted to give a tax break to those hurt by the Feb. 3, 2023, derailment during the same week the railroad agreed to pay $600 million to those who lived, worked or owned a business within 20 miles of the derailment.

The measure passed, 382-7, with all five Western Pennsylvania representatives voting yes. Similar legislation has been introduced in the Senate.

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“The East Palestine derailment was a disaster for a lot of families in Beaver County, and it is ridiculous that folks hurt by this train derailment in their backyard would have to pay taxes on Norfolk Southern’s payments to them,” said U.S. Rep. Chris Deluzio, D-Aspinwall. “Now, if the Senate follows suit, these payments will be exempted from federal taxes — just like we do for natural disasters. It's the right thing to do, and I was glad to see colleagues in both parties support this measure.”

These are new train tracks in East Palestine, Ohio on Tuesday, April 9, 2024. Norfolk Southern replaced them after the train derailment last year. (Lucy Schaly/Post-Gazette)
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Dozens of train cars, many of them carrying toxic chemicals, went off the tracks. The subsequent controlled release and burn of toxic chemicals days later prompted the evacuation of the East Palestine, sent a plume of black smoke into the skies over Beaver County, and left residents on both sides of the border fearful of the long-term health effects.

The release of the chemicals left Beaver County residents afraid to drink the water and farmers saying customers were afraid to buy meat from them.

Separate legislation in the U.S. Senate would study the long-term impacts of the derailment for five years. The bill was sponsored by U.S. Sens. Bob Casey and John Fetterman, D-Pa.; J.D. Vance, R-Ohio; and Sherrod Brown, D-Ohio.

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“The people of Darlington and East Palestine are still reeling from the disaster caused by Norfolk Southern’s train derailment,” Mr. Casey said. “This bill will help give these communities the answers they deserve about the potential long-term impact of the derailment on their health.”

Jonathan D. Salant: jsalant@post-gazette.com; @JDSalant

First Published: May 24, 2024, 4:57 p.m.
Updated: May 24, 2024, 5:38 p.m.

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A black plume rises over East Palestine, Ohio, as a result of a controlled detonation of a portion of the derailed Norfolk Southern trains on Monday, Feb. 6, 2023.  (ASSOCIATED PRESS)
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