§ 281. Terminal railroad corporations and their shareholders
(a)
Computation of taxable income of terminal railroad corporations
(1)
In general
In computing the taxable income of a terminal railroad corporation—
(A)
such corporation shall not be considered to have received or accrued—
(b)
Computation of taxable income of shareholders
Subject to the limitation in subsection (a)(2), in computing the taxable income of any shareholder of a terminal railroad corporation, no amount shall be considered to have been received or accrued or paid or incurred by such shareholder as a result of any discharge of liability described in subsection (a)(1)(A)(i) or as a result of any computation of charges in the manner described in subsection (a)(1)(A)(ii).
(c)
Agreement required
In the case of any taxable year, subsections (a) and (b) shall apply with respect to any discharge of liability described in subsection (a)(1)(A)(i), and to any computation of charges in the manner described in subsection (a)(1)(A)(ii), only if such discharge or computation (as in the case may be) was provided for in a written agreement, to which all of the shareholders of the terminal railroad corporation were parties, entered into before the beginning of such taxable year.
(d)
Definitions
For purposes of this section—
(1)
Terminal railroad corporation
The term “terminal railroad corporation” means a domestic railroad corporation which is not a member, other than as a common parent corporation, of an affiliated group (as defined in section
1504) and—
(A)
all of the shareholders of which are rail carriers subject to part
A of subtitle
IV of title
49;
(B)
the primary business of which is the providing of railroad terminal and switching facilities and services to rail carriers subject to part
A of subtitle
IV of title
49 and to the shippers and passengers of such railroad corporations;
(2)
Related terminal income
The term “related terminal income” means the income (determined in accordance with regulations prescribed by the Secretary) of a terminal railroad corporation derived—
(A)
from services or facilities of a character ordinarily and regularly provided by terminal railroad corporations for railroad corporations or for the employees, passengers, or shippers of railroad corporations;
(B)
from the use by persons other than railroad corporations of portions of a facility, or a service which is used primarily for railroad purposes;
(C)
from any railroad corporation for services or facilities provided by such terminal railroad corporation in connection with railroad operations; and
For purposes of subparagraph (B), a substantial addition, constructed after the date of the enactment of this section, to a facility shall be treated as a separate facility.
(e)
Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section.