OMB No. 1545-1983 Qualified Railroad Track Maintenance Credit Form 8900

 Attach to your tax return. Department of the Treasury

Internal Revenue Service

Attachment

Sequence No. 144

Name(s) shown on return Identifying number

Current Year Credit (Members of controlled groups or businesses under common control, see instructions.)

1

1

2 2

5

4

6

7

Allowable Credit (See Who must file Form 3800 to find out if you complete Part II or file Form 3800.)

Form 8900 (2005)

Part I

Part II

Qualified railroad track maintenance expenditures paid or incurred

(see instructions)

3a

Qualified railroad track

maintenance credit from

pass-through entities:

7 Current year credit. Add lines 5 and 6 (S corporations and partnerships, see instructions)

3a

Cat. No. 37708X

Enter 50% (.50) of line 1

Number of miles of railroad track owned or leased by you (see

instructions)

Multiply line 3d by $3,500

a

b

Shareholder

Partner

If you are a—

6

Then enter the total of the current year credits from—

Schedule K-1 (Form 1065), box 15, code F, G, or U

Schedule K-1 (Form 1120S), box 13, code F, G, or U 

For Paperwork Reduction Act Notice, see instructions.

● Individuals. Enter the amount from Form 1040, line 44

8

Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A,

Part I, line 1; or the applicable line of your return

●

●

11a 11a

b Credits from Form 1040, lines 48 through 54 11b

11d

Foreign tax credit

d

e 11e

Possessions tax credit (Form 5735, line 17 or 27)

f

Nonconventional source fuel credit (Form 8907, line 23)

Other specified credits (see instructions)

Add lines 11a through 11e 11f

12 Net income tax. Subtract line 11f from line 10. If zero, skip lines 13 through 16 and enter -0- on line 17 12

9 Alternative minimum tax:

● Individuals. Enter the amount from Form 6251, line 35

● Corporations. Enter the amount from Form 4626, line 14 9

● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 56

15 Tentative minimum tax (see instructions):

● Individuals. Enter the amount from Form 6251, line 33

● Corporations. Enter the amount from Form 4626, line 12

● Estates and trusts. Enter the amount from Form 1041,

Schedule I, line 54

13

Enter 25% (.25) of the excess, if any, of line 13 over $25,000 (see

instructions)

16

Subtract line 16 from line 12. If zero or less, enter -0-

16

17

Credit allowed for the current year. Enter the smaller of line 7 or line 17 here and on Form

1040, line 55; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2; Form 1041, Schedule

G, line 2c; or the applicable line of your return. If line 17 is smaller than line 7, see instructions 18



c 11c

8 Regular tax before credits:

10 Add lines 8 and 9 10

14

Enter the greater of line 14 or line 15

14

15

Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a

and 1b, or the amount from the applicable line of your return

Net regular tax. Subtract line 11f from line 8. If zero or less, enter -0-

18

17



2005

5 Enter the smaller of line 2 or line 4

4

b Less: number of miles of railroad track owned or leased by you and

assigned to other eligible taxpayers for purposes of this credit (see

instructions)

d Total. Combine lines 3a through 3c

3b

3d

c Number of miles of railroad track assigned to you by the owner or

lessee for purposes of this credit (see instructions) 3c

( )

13
Form 8900 (2005) Page 2

General Instructions

Section references are to the Internal Revenue Code

unless otherwise noted.

Purpose of Form

Eligible taxpayers use Form 8900 to claim the credit

with respect to qualified railroad track maintenance

expenditures paid or incurred during tax years

beginning after 2004 and before 2008.

Definitions

Eligible Taxpayer

Eligible taxpayers include:

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.

Qualified Railroad Track Maintenance Expenditures

Qualified railroad track maintenance expenditures

means expenditures (whether or not otherwise

chargeable to a capital account) for maintaining

railroad track (including roadbed, bridges, and related

track structures) owned or leased as of January 1,

2005, by a Class II or Class III railroad.

Specific Instructions

Part I—Current Year Credit

Figure the current year credit from your trade or

business on lines 1 through 5. Skip lines 1 through 5 if

you are only claiming a credit that was allocated to you

from an S corporation or partnership.

Line 1

Qualified railroad track maintenance expenditures must

be paid or incurred by an eligible taxpayer during the

tax year.

Line 3a (This line only applies to you if you are a Class

II or Class III railroad.)

You (a) must own or lease each mile of railroad track

by the close of your tax year that corresponds to the

credit computation and (b) that mile must have been

owned or leased by a Class II or Class III railroad as of

January 1, 2005.

You must reduce on line 3b the number of miles of

railroad track entered on line 3a that you assigned to

another eligible taxpayer for purposes of the credit

computation. You can only assign each mile of railroad

track once during your tax year. Each mile of railroad

track that you assign is treated as being assigned on

the last day of your tax year.

Line 3c

The eligible taxpayer (a) must be assigned each mile of

railroad track for purposes of the credit (i) by the close

of the tax year that corresponds to the credit

computation and (ii) by the Class II or Class III railroad

that owns or leases that railroad track and (b) that mile

must have been owned or leased by a Class II or Class

III railroad as of January 1, 2005.

S corporations and partnerships. Allocate the line 7

credit among the shareholders or partners. Show the

credit for each shareholder or partner on Schedule

K-1. Electing large partnerships include this credit in

“general credits.”

Member of controlled groups or business under

common control. For purposes of figuring the credit,

all members of a controlled group of corporations (as

defined in section 41(f)(5) and Regulations section

1.41-6T), and all members of a group of businesses

under common control, are treated as a single

taxpayer. The credit allowed each member is based on

its proportionate share of qualified railroad track

maintenance expenditures giving rise to the group’s

railroad track maintenance credit. Use Part I to figure

the credit for the entire group, but enter only this

member’s share of the credit on line 7. Attach a

statement showing how this member’s share of the

credit was figured, and write “See Attached” next to

the entry space for line 7.

Part II—Allowable Credit

The credit allowed for the current year may be limited

based on your tax liability. Use Part II to figure the

allowable credit unless you must file Form 3800,

General Business Credit.

Who must file Form 3800. You must file Form 3800 if

you have:

● A qualified railroad track maintenance credit from a

passive activity,

● More than one credit included in the general

business credit (other than a credit from Form 8844,

Form 6478, or Section B of Form 8835), or

● A carryback or carryforward of any of those credits.

Line 3b (This line only applies to you if you are a Class

II or Class III railroad.)

Line 7

Class I railroads include only the following seven

entities:

● BNSF,

● CSX,

● Grand Trunk Corporation (a holding company for all

of Canadian National’s U.S. railroad operations),

● Kansas City Southern,

● Norfolk Southern,

● Soo Line (owned by Canadian Pacific), and

● Union Pacific.

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

are defined by the Surface Transportation Board (STB).

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

eligible to claim the credit with respect to miles of

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

railroad for purposes of the credit. See the instructions

for line 3c.

Basis Reduction

You must reduce the basis of any railroad track by the

amount of the credit on line 5 related to that railroad

track.

No Credit Carryback

You may not carry this credit back to a tax year that

begins before 2005.
Form 8900 (2005) Page 3

Line 18

If you cannot use all of your credit because of the tax

liability limit (line 17 is smaller than line 7), you cannot

carry the unused credit back; you must carry the

unused credit forward up to 20 years. See the

instructions for Form 3800.

Paperwork Reduction Act Notice. We ask for the

information on this form to carry out the Internal

Revenue laws of the United States. You are required to

You are not required to provide the information

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

control number. Books or records relating to a form or

its instructions must be retained as long as their

contents may become material in the administration of

any Internal Revenue law. Generally, tax returns and

return information are confidential, as required by

section 6103.

The time needed to complete and file this form will

vary depending on individual circumstances. The

estimated burden for individual taxpayers filing this

form is approved under OMB control number

1545-0074 and is included in the estimates shown in

the instructions for their individual income tax return.

The estimated burden for all other taxpayers who file

this form is shown below.

Recordkeeping 6 hr., 56 min.

Learning about the law or the form 30 min.

Preparing, copying, assembling, and

sending the form to the IRS 38 min.

If you have comments concerning the accuracy of

these time estimates or suggestions for making this

form simpler, we would be happy to hear from you.

See the instructions for the tax return with which this

form is filed.

Line 15

Although you may not owe alternative minimum tax

(AMT), you generally must still compute the tentative

minimum tax (TMT) to figure your credit. For a small

corporation exempt from the AMT under section 55(e),

enter zero. Otherwise, complete and attach the

applicable AMT form or schedule.

See the instructions for Form 3800 for a list of

credits included in the general business credit.

Line 14

See section 38(c)(5) for special rules that apply to

married couples filing separate returns, controlled

corporate groups, estates, and trusts.

Line 11e

● Form 8834, Qualified Electric Vehicle Credit, line 20,

● Form 8910, Alternative Motor Vehicle Credit, line 18,

and

● Form 8911, Alternative Fuel Vehicle Refueling

Property Credit, line 19.

Include on line 11e any amounts claimed on:

give us the information. We need it to ensure that you

are complying with these laws and to allow us to figure

and collect the right amount of tax.