Form 8900 - Qualified Railroad Track Maintenance Credit

Eligible taxpayers file this form to claim the railroad track maintenance credit (RTMC) for qualified railroad track maintenance expenditures (QRTME) paid or incurred during the tax year.

Grant Deadline

Deadline not available

Funding Amount

40% of expense

Type of Grant

Tax Credit

Sectors

Transportation

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of United States

Keywords

transforming, paid, Maintenance, Railroad, Track

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

Eligible taxpayers. Eligible taxpayers include the following.

  1. Any Class II or Class III railroad, as these terms are defined by the Surface Transportation Board.
  2. Any person (including a Class I railroad (see below)) who transports property using the rail facilities of a Class II or Class III railroad.
  3. Any person (including a Class I railroad (see below)) who furnishes railroad-related services or property to a Class II or Class III railroad.

For purposes of (2) or (3) above, the taxpayer is only eligible to claim the credit for miles of eligible railroad track assigned to it by a Class II or Class III railroad for purposes of the credit. See the instructions for line 3c.Class I railroads include only the following six entities.

Rail facilities. Rail facilities of a Class II or Class III railroad are railroad yards, tracks, bridges, tunnels, wharves, docks, stations, and other related assets that are used in the transport of freight by a railroad and owned or leased by that railroad.

Railroad-related property. Railroad-related property is property that is provided directly to a Class II or Class III railroad and is unique to railroads. For a complete description, see Regulations section 1.45G-1(b)(7).

Railroad-related services. Railroad-related services are services that are provided directly to, and are unique to, a railroad and that relate to railroad shipping, loading and unloading of railroad freight, or repairs of rail facilities or railroad-related property. For examples of what are and what are not railroad-related services, see Regulations section 1.45G-1(b)(8).

Eligible railroad track. Eligible railroad track is railroad track located within the United States that is owned or leased by a Class II or Class III railroad at the close of its tax year. The railroad is treated as owning the railroad track if it is subject to depreciation under section 167 by the railroad. Double track is treated as multiple lines of railroad track, rather than as a single line of railroad track. That is, 1 mile of single track is 1 mile, but 1 mile of double track is 2 miles.

Qualifying railroad structure. Qualifying railroad structure is property located within the United States that includes, in part, tunnels, bridges, and railroad track. For a complete description, see Regulations section 1.45G-1(b)(4).

Qualified railroad track maintenance expenditures (QRTME). QRTME are expenditures (whether or not otherwise chargeable to a capital account) for maintaining, repairing, and improving a qualifying railroad structure that is owned or leased as of January 1, 2015, by a Class II or Class III railroad. If you paid or incurred QRTME during the tax year, you do not have to reduce that QRTME by any amount of direct or indirect reimbursement to which you are entitled from a Class II or Class III railroad which made an assignment of eligible railroad track to you.

Grant Application website

https://www.irs.gov/instructions/i8900

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