Section 10-28-21.2 - Tax credit for expenses of a capital nature incurred by public railroad or railwaycorporation--Application of credit.
10-28-21.2. Tax credit for expenses of a capital nature incurred by public railroad or railway corporation--Application of credit. Any publicly operated railroad or railway corporation operating over rail lines owned by the publicly operated railroad or railway corporation located within this state may claim a credit against the tax levied on such rail lines for amounts that the railroad or railway corporation has certified as having been expended in the replacement, improvement, and repair of such rail lines. Only those expenses of a capital nature may be certified as an expense eligible for a credit pursuant to this section. The certification required by this section shall be on forms provided by the Department of Revenue and Regulation. The labor and material expenses certified pursuant to this section shall be itemized separately by rail line and mile post locations . The credit provided in this section shall be applied proportionally across the railroad's entire mainline within this state. The credit shall be applied to tax liability over a three-year period in an amount equal to thirty-three and one-third percent the first year following certification; thirty-three and one-third percent of such an amount shall carry forward into the second year following certification; and thirty-three and one-third percent shall carry forward into the third year following certification. Each year's carryover shall be accumulated as a tax credit with other years' annual tax credits. No credit may be given for the repair or replacement of railway line necessitated by washout, fire, or train derailment. No credit may be given for that portion of a project that is funded with state or federal grant funds or paid for by any third party. If any rail line goes over ten million gross ton miles of revenue freight per mile annually in a calendar year, the rail line may not receive a credit pursuant to this section in the following calendar year.
Source: SL 2003, ch 57, § 1; SL 2003, ch 272, § 82; SL 2004, ch 88, § 1.