HF 1026

as introduced - 87th Legislature (2011 - 2012) Posted on 03/10/2011 09:48am

A bill for an act
relating to taxation; income; providing a credit for railroad track maintenance;
proposing coding for new law in Minnesota Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.0693] RAILROAD TRACK MAINTENANCE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An eligible taxpayer is allowed a credit against the
tax imposed by this chapter in an amount equal to 50 percent of the qualified railroad track
maintenance expenditures, not to exceed the product of $3,500, multiplied by the sum of:
new text end

new text begin (1) the number of miles of railroad track in this state owned or leased by the eligible
taxpayer as of the close of the taxable year; and
new text end

new text begin (2) the number of miles of railroad track in this state assigned for purposes of this
section to the eligible taxpayer by a Class II or Class III railroad which owns or leases the
railroad track as of the close of the taxable year.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Eligible taxpayer" means:
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new text begin (1) any Class II or Class III railroad; or
new text end

new text begin (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 the person by a
Class II or Class III railroad as determined in subdivision 3.
new text end

new text begin (c) "Class II railroad" and "Class III railroad" have the meanings given by the
Surface Transportation Board.
new text end

new text begin (d) "Qualified railroad track maintenance expenditures" means gross expenditures
for maintaining railroad track in this state, including roadbed, bridges, and related track
structures, owned or leased as of January 1, 2011, by a Class II or Class III railroad.
new text end

new text begin Subd. 3. new text end

new text begin Assignments of railroad track. new text end

new text begin For purposes of subdivision 1, clause (2),
any assignment of a mile of railroad track:
new text end

new text begin (1) may be made only once per taxable year by the Class II or Class III railroad and
shall be treated as made as of the close of the taxable year;
new text end

new text begin (2) may not be taken into account under this section by the Class II or Class III
railroad for purposes of subdivision 1, clause (1); and
new text end

new text begin (3) shall be taken into account by the assignee for the taxable year that the
assignment is made.
new text end

new text begin Subd. 4. new text end

new text begin Limitation; carryover. new text end

new text begin The credit for the taxable year shall not exceed
the liability for the tax imposed by this chapter. If the amount of the credit determined
under this section for any taxable year exceeds the limitation, the excess shall be a credit
carryover to each of the seven succeeding taxable years. The entire amount of the excess
unused credit for the taxable year shall be carried first to the earliest of the taxable years
to which the credit may be carried and then to each successive year to which the credit
may be carried.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010.
new text end