‘‘(d) CONTROLLED GROUPS.—For purposes of sub-
section (b), rules similar to the rules of paragraph (1) of 
section 41(f) shall apply for purposes of this subsection. 
‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section with respect 
to any railroad track, the basis of such track shall be re-
duced by the amount of the credit so allowed. 
‘‘(f) APPLICATION OF SECTION.—This section shall 
apply to qualified railroad track maintenance expenditures 
paid or incurred during taxable years beginning after De-
cember 31, 2003, and before January 1, 2009. 
‘‘(g) CREDIT TRANSFERABILITY.—
‘‘(1) IN GENERAL.—The taxpayer who would 
(but for this subsection) be allowed a credit under 
this section for any taxable year may transfer such 
credit to any eligible taxpayer. Any credit so trans-
ferred shall be allowed to the transferee, but the 
transferee may not assign such credit to any other 
person. 
‘‘(2) ELIGIBLE
TAXPAYER.—For purposes of 
this subsection, the term ‘eligible taxpayer’ means—
‘‘(A) any person who transports property 
using the rail facilities of the taxpayer or who 
furnishes railroad-related property or services 
to the taxpayer, and
‘‘(B) any Class II or Class III railroad. 
‘‘(3) MINIMUM PRICE FOR TRANSFER.—Para-
graph (1) shall not apply unless the taxpayer re-
ceives compensation for the credit transfer equal to 
at least 50 percent of the amount of credit trans-
ferred. The excess of the amount of credit trans-
ferred over the compensation received by the tax-
payer for such transfer shall be included in the gross 
income of the transferee.’’
(b) LIMITATION ON CARRYBACK.—Section 39(d) of 
the Internal Revenue Code of 1986 (relating to transition 
rules) is amended by adding at the end the following new 
paragraph: 
‘‘(11) NO
CARRYBACK
OF
RAILROAD
TRACK 
MAINTENANCE CREDIT BEFORE EFFECTIVE DATE.—
No portion of the unused business credit for any 
taxable year which is attributable to the railroad 
track maintenance credit determined under section 
45G may be carried to a taxable year beginning be-
fore January 1, 2004.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 38(b) of the Internal Revenue Code 
of 1986 (relating to general business credit) is 
amended by striking ‘‘plus’’ at the end of paragraph 
(14), by striking the period at the end of paragraph
(15) and inserting ‘‘, plus’’, and by adding at the 
end the following new paragraph: 
‘‘(16) the railroad track maintenance credit de-
termined under section 45G(a).’’. 
(2) Subsection (a) of section 1016 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (27), by striking the period at the end of 
paragraph (28) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
‘‘(29) in the case of railroad track with respect 
to which a credit was allowed under section 45G, to 
the extent provided in section 45G(e).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 45F the following 
new item:
‘‘Sec. 45G. Railroad track maintenance credit.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003.
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