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141.385 Nonrefundable tax credit for railroad improvement.
(1)
(2)
(3)
(4)
(5)
As used in this section:
(a) "Class II railroad" means a railroad company classified as a Class II
carrier by the federal Surface Transportation Board;
(b) "Class III railroad" means a railroad company classified as a Class III
carrier by the federal Surface Transportation Board;
(c) "Qualified expenditures" means expenditures, whether or not otherwise
chargeable to a capital account, that are made to maintain or improve
railroads located in Kentucky, including roadbeds, bridges, and related
structures, that are owned or leased as of January 1, 2008, by a Class II
or Class III railroad; and
(d) "Eligible taxpayer" means:
1.
The owner of any Class II railroad or Class III railroad located in
Kentucky; or
2.
Any person who transports property using the rail facilities of a
Class II railroad or Class III railroad located in Kentucky or furnishes
railroad-related property or services to a Class II railroad or Class III
railroad located in Kentucky, but only with respect to miles of
railroad track assigned to the person by a Class II railroad or Class
III railroad for purposes of subsection (3) of this section.
For taxable years beginning after December 31, 2009, an eligible taxpayer
shall be entitled to a nonrefundable credit against the taxes imposed by KRS
141.020 or 141.040, and 141.0401 with the ordering of credits as directed in
KRS 141.0205, in an amount equal to fifty percent (50%) of the qualified
expenditures paid or incurred by the taxpayer during the taxable year.
The credit allowed under subsection (2) of this section shall not exceed the
product of:
(a) Three thousand five hundred dollars ($3,500) multiplied by:
(b) The sum of:
1.
The number of miles of railroad track in Kentucky owned or leased
by the eligible taxpayer as of the close of the taxable year; and
2.
The number of miles of railroad track in Kentucky assigned for
purposes of this section to the eligible taxpayer by a Class II railroad
or Class III railroad which owns or leases the railroad track as of the
close of the taxable year.
A mile of railroad track may be taken into account by a qualified taxpayer other
than the owner only if the mile of railroad track is assigned to the person by the
owner for purposes of this section. Any mile that is so assigned shall not be
taken into account by the owner for purposes of this section.
With respect to any assignment of a mile of railroad track under subsection (4)
of this section:
(a) The assignment may be made only once per taxable year of the Class II
railroad or Class III railroad and shall be treated as made as of the close
of the taxable year;
(b)
(6)
The mile shall not be taken into account under this section by the railroad
for such taxable year; and
(c) The assignment shall be taken into account for the taxable year of the
assignee, which includes the date that the assignment is treated as
effective.
If a credit is taken as provided for in subsection (2) of this section, the basis of
the track shall be reduced by the amount of credit taken.
Effective:June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 69, effective June 26,
2009.
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