Bill Text: MN HF1026 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Railroad track maintenance credit provided.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-03-14 - Author added Morrow [HF1026 Detail]
Download: Minnesota-2011-HF1026-Introduced.html
1.2relating to taxation; income; providing a credit for railroad track maintenance;
1.3proposing coding for new law in Minnesota Statutes, chapter 290.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [290.0693] RAILROAD TRACK MAINTENANCE CREDIT.
1.6 Subdivision 1. Credit allowed. An eligible taxpayer is allowed a credit against the
1.7tax imposed by this chapter in an amount equal to 50 percent of the qualified railroad track
1.8maintenance expenditures, not to exceed the product of $3,500, multiplied by the sum of:
1.9(1) the number of miles of railroad track in this state owned or leased by the eligible
1.10taxpayer as of the close of the taxable year; and
1.11(2) the number of miles of railroad track in this state assigned for purposes of this
1.12section to the eligible taxpayer by a Class II or Class III railroad which owns or leases the
1.13railroad track as of the close of the taxable year.
1.14 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.15the meanings given.
1.16(b) "Eligible taxpayer" means:
1.17(1) any Class II or Class III railroad; or
1.18(2) any person who transports property using the rail facilities of a Class II or Class
1.19III railroad or who furnishes railroad-related property or services to a Class II or Class
1.20III railroad, but only with respect to miles of railroad track assigned to the person by a
1.21Class II or Class III railroad as determined in subdivision 3.
1.22(c) "Class II railroad" and "Class III railroad" have the meanings given by the
1.23Surface Transportation Board.
2.1(d) "Qualified railroad track maintenance expenditures" means gross expenditures
2.2for maintaining railroad track in this state, including roadbed, bridges, and related track
2.3structures, owned or leased as of January 1, 2011, by a Class II or Class III railroad.
2.4 Subd. 3. Assignments of railroad track. For purposes of subdivision 1, clause (2),
2.5any assignment of a mile of railroad track:
2.6(1) may be made only once per taxable year by the Class II or Class III railroad and
2.7shall be treated as made as of the close of the taxable year;
2.8(2) may not be taken into account under this section by the Class II or Class III
2.9railroad for purposes of subdivision 1, clause (1); and
2.10(3) shall be taken into account by the assignee for the taxable year that the
2.11assignment is made.
2.12 Subd. 4. Limitation; carryover. The credit for the taxable year shall not exceed
2.13the liability for the tax imposed by this chapter. If the amount of the credit determined
2.14under this section for any taxable year exceeds the limitation, the excess shall be a credit
2.15carryover to each of the seven succeeding taxable years. The entire amount of the excess
2.16unused credit for the taxable year shall be carried first to the earliest of the taxable years
2.17to which the credit may be carried and then to each successive year to which the credit
2.18may be carried.
2.19EFFECTIVE DATE.This section is effective for taxable years beginning after
2.20December 31, 2010.
1.3proposing coding for new law in Minnesota Statutes, chapter 290.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [290.0693] RAILROAD TRACK MAINTENANCE CREDIT.
1.6 Subdivision 1. Credit allowed. An eligible taxpayer is allowed a credit against the
1.7tax imposed by this chapter in an amount equal to 50 percent of the qualified railroad track
1.8maintenance expenditures, not to exceed the product of $3,500, multiplied by the sum of:
1.9(1) the number of miles of railroad track in this state owned or leased by the eligible
1.10taxpayer as of the close of the taxable year; and
1.11(2) the number of miles of railroad track in this state assigned for purposes of this
1.12section to the eligible taxpayer by a Class II or Class III railroad which owns or leases the
1.13railroad track as of the close of the taxable year.
1.14 Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.15the meanings given.
1.16(b) "Eligible taxpayer" means:
1.17(1) any Class II or Class III railroad; or
1.18(2) any person who transports property using the rail facilities of a Class II or Class
1.19III railroad or who furnishes railroad-related property or services to a Class II or Class
1.20III railroad, but only with respect to miles of railroad track assigned to the person by a
1.21Class II or Class III railroad as determined in subdivision 3.
1.22(c) "Class II railroad" and "Class III railroad" have the meanings given by the
1.23Surface Transportation Board.
2.1(d) "Qualified railroad track maintenance expenditures" means gross expenditures
2.2for maintaining railroad track in this state, including roadbed, bridges, and related track
2.3structures, owned or leased as of January 1, 2011, by a Class II or Class III railroad.
2.4 Subd. 3. Assignments of railroad track. For purposes of subdivision 1, clause (2),
2.5any assignment of a mile of railroad track:
2.6(1) may be made only once per taxable year by the Class II or Class III railroad and
2.7shall be treated as made as of the close of the taxable year;
2.8(2) may not be taken into account under this section by the Class II or Class III
2.9railroad for purposes of subdivision 1, clause (1); and
2.10(3) shall be taken into account by the assignee for the taxable year that the
2.11assignment is made.
2.12 Subd. 4. Limitation; carryover. The credit for the taxable year shall not exceed
2.13the liability for the tax imposed by this chapter. If the amount of the credit determined
2.14under this section for any taxable year exceeds the limitation, the excess shall be a credit
2.15carryover to each of the seven succeeding taxable years. The entire amount of the excess
2.16unused credit for the taxable year shall be carried first to the earliest of the taxable years
2.17to which the credit may be carried and then to each successive year to which the credit
2.18may be carried.
2.19EFFECTIVE DATE.This section is effective for taxable years beginning after
2.20December 31, 2010.
