Short Line Railroad Infrastructure Modernization Credit

To be eligible for the credit, you must be a Class II or Class III railroad that received a credit certificate from the Minnesota Department of Transportation.

You must apply with the Minnesota Department of Transportation for a credit certificate. The Department of Transportation will issue a credit certificate number that you must include on your return.

Use this table to determine which form to claim the credit:

Any remaining credit from S corporations or partnerships may be passed through to partners and shareholders.

This credit is nonrefundable. If your credit exceeds your tax liability, you can carryover the excess for up to five tax years, beginning with the earliest tax year to which it may be carried.

You may transfer the entire unused amount of the credit or the remaining unused portion of the credit to one other transferee by a written transfer agreement. This can be any taxpayer subject to corporate franchise tax, income taxes, or insurance premium taxes.

Use one of these as the written transfer agreement:

• Page 2 of Schedule RAIL
• The transfer form on the Minnesota Department of Transportation credit certificate

You must file a copy of the written transfer agreement with the Department of Revenue within 30 days of the transfer.

We will issue a credit certificate to the transferee within 30 days of the filing.

If the credit is not transferred on the optional transfer form included on the credit certificate issued by the Minnesota Department of Transportation, you must use Schedule RAIL to complete a transfer. Mail the completed schedule to the address shown on the Schedule RAIL to transfer the Short Line Railroad Infrastructure Modernization Credit.