Amended 2008, 2010, 2013, 2014, 2015, 2018, 2019, 2020
- 2020 Pub. L. 116-260 Pub. L. 116–260, § 105(a), struck out subsec. (f). Text read as follows: “This section shall apply to qualified railroad track maintenance expenditures paid or incurred during taxable years beginning after December 31, 2004, and before January 1, 2023.”
- 2019 Pub. L. 116-94 Pub. L. 116–94 substituted “January 1, 2023” for “January 1, 2018”.
- 2018 Pub. L. 115-123 Pub. L. 115–123 substituted “January 1, 2018” for “January 1, 2017”.
- 2015 Pub. L. 114-113 Pub. L. 114–113, § 162(a), substituted “January 1, 2017” for “January 1, 2015”.
- 2014 Pub. L. 113-295 Pub. L. 113–295 substituted “January 1, 2015” for “January 1, 2014”.
- 2013 Pub. L. 112-240 Pub. L. 112–240 substituted “January 1, 2014” for “January 1, 2012”.
- 2010 Pub. L. 111-312 Pub. L. 111–312 substituted “January 1, 2012” for “January 1, 2010”.
- 2008 Pub. L. 110-343 Pub. L. 110–343 substituted “January 1, 2010” for “January 1, 2008”.
Forms: Form 8900
Final rules 3
(a) General rule For purposes of section 38, the railroad track maintenance credit determined under this section for the taxable year is an amount equal to 40 percent (50 percent in the case of any taxable year beginning before January 1, 2023) of the qualified railroad track maintenance expenditures paid or incurred by an eligible taxpayer during the taxable year.
Amended 2020
- 2020 Pub. L. 116-260 Pub. L. 116–260, § 105(b), substituted “40 percent (50 percent in the case of any taxable year beginning before January 1, 2023)” for “50 percent”.
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(b) Limitation
Amended 2005
- 2005 Pub. L. 109-135 Pub. L. 109–135, § 403(f)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The credit allowed under subsection (a) for any taxable year shall not exceed the product of—
“(1) $3,500, and
“(2) the number of miles of railroad track owned or leased by the eligible taxpayer as of the close of the taxable year.
A mile of railroad track may be taken into account by a person other than the owner only if such mile is assigned to such person by the owner for purposes of this subsection. Any mile which is so assigned may not be taken into account by the owner for purposes of this subsection.”
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(1) In general The credit allowed under subsection (a) for any taxable year shall not exceed the product of—
(A) $3,500, multiplied by
(B) the sum of—
(i) the number of miles of railroad track owned or leased by the eligible taxpayer as of the close of the taxable year, and
(ii) the number of miles of railroad track assigned for purposes of this subsection to the eligible taxpayer by a Class II or Class III railroad which owns or leases such railroad track as of the close of the taxable year.
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(2) Assignments With respect to any assignment of a mile of railroad track under paragraph (1)(B)(ii)—
(A) such assignment may be made only once per taxable year of the Class II or Class III railroad and shall be treated as made as of the close of such taxable year,
(B) such mile may not be taken into account under this section by such railroad for such taxable year, and
(C) such assignment shall be taken into account for the taxable year of the assignee which includes the date that such assignment is treated as effective.
(c) Eligible taxpayer For purposes of this section, the term “eligible taxpayer” means—
(1) any Class II or Class III railroad, and
(2) any person who transports property using the rail facilities of a Class II or Class III railroad or who furnishes railroad-related property or services to a Class II or Class III railroad, but only with respect to miles of railroad track assigned to such person by such Class II or Class III railroad for purposes of subsection (b).
Amended 2005
- 2005 Pub. L. 109-135 Pub. L. 109–135, § 403(f)(2), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “any person who transports property using the rail facilities of a person described in paragraph (1) or who furnishes railroad-related property or services to such a person.”
(d) Qualified railroad track maintenance expenditures For purposes of this section, the term “qualified railroad track maintenance expenditures” means gross expenditures (whether or not otherwise chargeable to capital account) for maintaining railroad track (including roadbed, bridges, and related track structures) owned or leased as of January 1, 2015, by a Class II or Class III railroad (determined without regard to any consideration for such expenditures given by the Class II or Class III railroad which made the assignment of such track).
Amended 2006, 2015
- 2015 Pub. L. 114-113 Pub. L. 114–113, § 162(b), substituted “January 1, 2015” for “January 1, 2005”.
- 2006 Pub. L. 109-432 Pub. L. 109–432 inserted “gross” after “means” and “(determined without regard to any consideration for such expenditures given by the Class II or Class III railroad which made the assignment of such track)” before period at end.
(e) Other definitions and special rules
(1) Class II or Class III railroad For purposes of this section, the terms “Class II railroad” and “Class III railroad” have the respective meanings given such terms by the Surface Transportation Board.
(2) Controlled groups Rules similar to the rules of paragraph (1) of section 41(f) shall apply for purposes of this section.
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(3) Basis adjustment For purposes of this subtitle, if a credit is allowed under this section with respect to any railroad track, the basis of such track shall be reduced by the amount of the credit so allowed.