Instructions For Form 8900 - Qualified Railroad Track Maintenance Credit

2014

Department of the Treasury

Internal Revenue Service

Instructions for Form 8900

Qualified Railroad Track Maintenance Credit

Section references are to the Internal Revenue Code

Grand Trunk Corporation (a holding company for all of

unless otherwise noted.

Canadian National's U.S. railroad operations).

Kansas City Southern.

General Instructions

Norfolk Southern.

Soo Line (owned by Canadian Pacific).

Future Developments

Union Pacific.

For the latest information about developments related to

Rail facilities. Rail facilities of a Class II or Class III

Form 8900 and its instructions, such as legislation

railroad are railroad yards, tracks, bridges, tunnels,

enacted after they were published, go to

wharves, docks, stations, and other related assets that

form8900.

are used in the transport of freight by a railroad and

What's New

owned or leased by that railroad.

Railroad-related property. Railroad-related property is

The qualified railroad track maintenance credit was

property that is provided directly to a Class II or Class III

extended to cover qualified railroad track maintenance

railroad and is unique to railroads. For a complete

expenditures paid or incurred in tax years beginning in

description, see Regulations section 1.45G-1(b)(7).

2014.

Railroad-related services. Railroad-related services are

Who Must File

services that are provided directly to, and are unique to, a

Eligible taxpayers use Form 8900 to claim the railroad

railroad and that relate to railroad shipping, loading and

track maintenance credit (RTMC) for qualified railroad

unloading of railroad freight, or repairs of rail facilities or

track maintenance expenditures (QRTME) paid or

railroad-related property. For examples of what are and

incurred during the tax year. If you are an assignor of

what are not railroad-related services, see Regulations

miles of eligible railroad track, you must file Form 8900

section 1.45G-1(b)(8).

even if you do not claim any RTMC. See the instructions

Eligible railroad track. Eligible railroad track is railroad

for line 3b for the additional information that must be

track located within the United States that is owned or

provided by assignors.

leased by a Class II or Class III railroad at the close of its

Partnerships and S corporations must file this form to

tax year. The railroad is treated as owning the railroad

claim the credit. All other taxpayers are not required to

track if it is subject to depreciation under section 167 by

complete or file this form if their only source for this credit

the railroad. Double track is treated as multiple lines of

is a partnership or S corporation. Instead, they can report

railroad track, rather than as a single line of railroad track.

this credit directly on line 4g in Part III of Form 3800,

That is, one mile of single track is one mile, but one mile of

General Business Credit.

double track is two miles.

Definitions

Qualifying railroad structure. Qualifying railroad

structure is property located within the United States that

Eligible taxpayers. Eligible taxpayers include the

includes, in part, tunnels, bridges, and railroad track. For a

following.

complete description, see Regulations section 1.45G-1(b)

1. Any Class II or Class III railroad, as these terms are

(4).

defined by the Surface Transportation Board.

Qualified railroad track maintenance expenditures

2. Any person (including a Class I railroad (see

(QRTME). QRTME are expenditures (whether or not

below)) who transports property using the rail facilities of a

otherwise chargeable to a capital account) for

Class II or Class III railroad.

maintaining, repairing, and improving a qualifying railroad

structure that is owned or leased as of January 1, 2005,

3. Any person (including a Class I railroad (see

by a Class II or Class III railroad. If you paid or incurred

below)) who furnishes railroad-related services or

QRTME during the tax year, you do not have to reduce

property to a Class II or Class III railroad.

that QRTME by any amount of direct or indirect

For purposes of (2) or (3) above, the taxpayer is only

reimbursement to which you are entitled from a Class II or

eligible to claim the credit for miles of eligible railroad track

Class III railroad which made an assignment of eligible

assigned to it by a Class II or Class III railroad for

railroad track to you.

purposes of the credit. See the instructions for line 3c.

Adjustments to Basis

Class I railroads include only the following seven

entities.

Some or all of the QRTME paid or incurred by an eligible

BNSF.

taxpayer may be required to be capitalized as a tangible

asset or an intangible asset, if applicable. See

CSX.

Regulations section 1.45G-1(e)(1).

Feb 06, 2015

Cat. No. 66497D

Instructions For Form 8900 - Qualified Railroad Track Maintenance Credit - 2014

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