Railroad Maintenance

Minnesota allows a subtraction for railroad maintenance expenses by certain railroads.

Do I qualify for this subtraction?

To qualify, both of the following must be true:

• You claimed a federal credit for railroad maintenance expenses on federal Form 8900.
• You incurred expenses from railroads classified by the U.S. Surface Transportation Board as any of the following:
  • Class III (small)
  • Class II (medium-sized)
  • Class I (large), if transporting property using the rail facilities of a Class II or III railroad

You may subtract from Minnesota taxable income any expenses you were not allowed to deduct on your federal income tax return.

How do I claim this subtraction?

Complete Schedule M1M, Income Additions and Subtractions. Include Schedule M1M when you file Form M1, Individual Income Tax.