Railroad Maintenance Subtraction


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

To qualify, both of these 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 these:
    • 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.

To claim the subtraction, complete Schedule M1MB, Business Income Additions and Subtractions, and include it when you file Form M1, Individual Income Tax.

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