26 U.S.C. § 45G
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.
The credit allowed under subsection (a) for any taxable year shall not exceed the product of-
With respect to any assignment of a mile of railroad track under paragraph (1)(B)(ii)-
For purposes of this section, the term "eligible taxpayer" means-
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).
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.
Rules similar to the rules of paragraph (1) of section 41(f) shall apply for purposes of this section.
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.
26 U.S.C. § 45G
EDITORIAL NOTES
AMENDMENTS2020-Subsec. (a). 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".Subsec. (f). 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-Subsec. (f). Pub. L. 116-94 substituted "January 1, 2023" for "January 1, 2018". 2018-Subsec. (f). Pub. L. 115-123 substituted "January 1, 2018" for "January 1, 2017".2015-Subsec. (d). Pub. L. 114-113, §162(b), substituted "January 1, 2015" for "January 1, 2005".Subsec. (f). Pub. L. 114-113, §162(a), substituted "January 1, 2017" for "January 1, 2015". 2014-Subsec. (f). Pub. L. 113-295 substituted "January 1, 2015" for "January 1, 2014".2013-Subsec. (f). Pub. L. 112-240 substituted "January 1, 2014" for "January 1, 2012". 2010-Subsec. (f). Pub. L. 111-312 substituted "January 1, 2012" for "January 1, 2010".2008-Subsec. (f). Pub. L. 110-343 substituted "January 1, 2010" for "January 1, 2008". 2006-Subsec. (d). 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. 2005-Subsec. (b). 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." Subsec. (c)(2). 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."
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116-260, div. EE, title I, §105(c), Dec. 27, 2020, 134 Stat. 3041, provided that: "The amendments made by this section [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [Dec. 27, 2020]."
EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116-94, div. Q, title I, §112(c), Dec. 20, 2019, 133 Stat. 3229, provided that: "The amendment made by this section [amending this section] shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2017."
EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115-123, div. D, title I, §40302(b), Feb. 9, 2018, 132 Stat. 145, provided that:"(1) IN GENERAL.-The amendment made by this section [amending this section] shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2016. "(2) SAFE HARBOR ASSIGNMENTS.-Assignments, including related expenditures paid or incurred, under paragraph (2) of section 45G(b) of the Internal Revenue Code of 1986 for taxable years ending after January 1, 2017, and before January 1, 2018, shall be treated as effective as of the close of such taxable year if made pursuant to a written agreement entered into no later than 90 days following the date of the enactment of this Act [Feb. 9, 2018]."
EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114-113, div. Q, title I, §162(c), Dec. 18, 2015, 129 Stat. 3066, provided that:"(1) EXTENSION.-The amendment made by subsection (a) [amending this section] shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2014. "(2) MODIFICATION.-The amendment made by subsection (b) [amending this section] shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2015."
EFFECTIVE DATE OF 2014 AMENDMENT Pub. L. 113-295, div. A, title I, §116(b), Dec. 19, 2014, 128 Stat. 4014, provided that: "The amendment made by this section [amending this section] shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2013."
EFFECTIVE DATE OF 2013 AMENDMENT Pub. L. 112-240, §306(b), Jan. 2, 2013, 126 Stat. 2329, provided that: "The amendment made by this section [amending this section] shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2011."
EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111-312, §734(b), Dec. 17, 2010, 124 Stat. 3318, provided that: "The amendment made by this section [amending this section] shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2009."
EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110-343, div. C, title III, §316(c)(1), Oct. 3, 2008, 122 Stat. 3872, provided that: "The amendment made by subsection (a) [amending this section] shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2007."
EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109-432, div. A, title IV, §423(b), Dec. 20, 2006, 120 Stat. 2973, provided that: "The amendment made by this section [amending this section] shall take effect as if included in the amendment made by section 245(a) of the American Jobs Creation Act of 2004 [Pub. L. 108-357]."
EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109-135 effective as if included in the provision of the American Jobs Creation Act of 2004, Pub. L. 108-357, to which such amendment relates, see section 403(nn) of Pub. L. 109-135, set out as a note under section 26 of this title.
EFFECTIVE DATESection applicable to taxable years beginning after Dec. 31, 2004, see section 245(e) of Pub. L. 108-357, set out as an Effective Date of 2004 Amendment note under section 38 of this title.
SAFE HARBOR ASSIGNMENTS Pub. L. 116-94, div. Q, title I, §112(b), Dec. 20, 2019, 133 Stat. 3228, provided that: "Any assignment, including related expenditures paid or incurred, under section 45G(b)(2) of the Internal Revenue Code of 1986 for a taxable year beginning on or after January 1, 2018, and ending before January 1, 2020, shall be treated as effective as of the close of such taxable year if made pursuant to a written agreement entered into no later than 90 days following the date of the enactment of this Act [Dec. 20, 2019]."
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.