WASHINGTON — U.S. Rep. Kathy Dahlkemper, D-3rd, on Wednesday introduced legislation in an effort to create and preserve jobs in the locomotive industry and manufacturing sector.

If approved, this measure could help keep 700 jobs in Grove City.

GE Transportation makes train engines in Grove City and makes train cars in Erie.

The company earlier this month announced that it would cut its work force of 900 to 700 by November in Grove City because of decreased demand for locomotives.

"The locomotive industry in the United States provides more than 125,000 direct jobs and supports thousands more," Dahlkemper said in a news release. "My legislation will create jobs by helping boost the sale of freight long haul, passenger and switch locomotives by making fleet investment more affordable for our nation's rail companies."

The Locomotive Fleet Investment and Tax Credit Act of 2009 would create a 30 percent tax credit for the purchase of new and newly remanufactured freight long haul, passenger and switch locomotives, according to a news release. Newly purchased locomotives must be in service before Dec. 31, 2013 to qualify for the tax credit.

"We welcome Congresswoman Dahlkemper's Locomotive Fleet Investment and Tax Credit Act of 2009 proposal," said Lorenzo Simonelli, president and CEO of GE Transportation, in a news release. "The tax credit would incentivize North American railroads to retire aging locomotive clunkers for technologically advanced, fuel-efficient and low-emission locomotives built in the USA. The legislation would also help sustain well-paying manufacturing jobs in northwestern Pennsylvania."

Stephan Koller, director of communications for GE Transportation, said the legislation is a "step in the right direction.

"It would provide a historic opportunity for railroads in North America to upgrade their locomotive fleets with green engines that are built in the U.S.A.," Koller said.