Internal Revenue Code:Sec. 45G. Railroad track maintenance credit
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Contents |
Location
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAXES
Statute
SEC. 45G. RAILROAD TRACK MAINTENANCE CREDIT.
(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 50 percent of the qualified railroad track
maintenance expenditures paid or incurred by an eligible taxpayer during
the taxable year.
(b) Limitation.--
(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.
(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).
(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,
2005, 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).
(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.
(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.
(f) Application of Section.--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, 2008.
Sources
Pub.L. 108-357, Sec.245, dated October 22, 2004.
Miscellaneous
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 423. MODIFICATION OF RAILROAD TRACK MAINTENANCE CREDIT.
(a) In General.--Section 45G(d) <<NOTE: 26 USC 45G.>> (defining
qualified railroad track maintenance expenditures) is amended--
(1) by inserting ``gross'' after ``means'', and
(2) by inserting ``(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)''
after ``Class II or Class III railroad''.
2005 - P.L. 109-135, Section 403
(f) Amendments Related to Section 245 of the Act.--
(1) Subsection (b) of section 45G is amended to read as
follows:
``(b) Limitation.--
``(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.
``(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.''.
(2) Paragraph (2) of section 45G(c) is <<NOTE: 26 USC
45G.>> amended to read as follows:
``(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).''.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 423(b) Effective Date.--The <<NOTE: 26 USC 45G note.>> amendment made
by this section shall take effect as if included in the amendment made
by section 245(a) of the American Jobs Creation Act of 2004.
