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instrx
AH XSL/XML Fileid: … ns/i8900/202312/a/xml/cycle05/source (Init. & Date) _______

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Department of the Treasury
Internal Revenue Service
Instructions for Form 8900

(Rev. December 2023)
Qualified Railroad Track Maintenance Credit

Section references are to the Internal Revenue Code 2. Any person (including a Class I railroad (see
unless otherwise noted. below)) who transports property using the rail facilities of a
Class II or Class III railroad.
Future Developments 3. Any person (including a Class I railroad (see
For the latest information about developments related to below)) who furnishes railroad-related services or
Form 8900 and its instructions, such as legislation property to a Class II or Class III railroad.
enacted after they were published, go to IRS.gov/
Form8900. For purposes of (2) or (3) above, the taxpayer is only
eligible to claim the credit for miles of eligible railroad track
What’s New assigned to it by a Class II or Class III railroad for
purposes of the credit. See the instructions for line 3c.
Credit made permanent. The qualified railroad track
maintenance credit was extended to cover qualified Class I railroads include only the following six entities.
railroad track maintenance expenditures paid or incurred • BNSF.
in all tax years beginning after 2022. • Canadian National.
• Canadian Pacific Kansas City.
Credit rate reduced to 40%. For tax years beginning • CSX.
after 2022, the credit rate on line 2 of Form 8900 was • Norfolk Southern.
reduced from 50% to 40%. • Union Pacific.
Class I railroads. In 2023, Canadian Pacific merged with Rail facilities. Rail facilities of a Class II or Class III
Kansas City Southern reducing the list of Class I railroads railroad are railroad yards, tracks, bridges, tunnels,
from seven to six entities. See Eligible taxpayers. wharves, docks, stations, and other related assets that are
used in the transport of freight by a railroad and owned or
Which Revision To Use
leased by that railroad.
Use the December 2023 revision of Form 8900 for tax
years beginning in 2023 or later, until a later revision is Railroad-related property. Railroad-related property is
issued. The December 2023 revision reflects the new 40% property that is provided directly to a Class II or Class III
credit rate discussed earlier. Use prior revisions of the railroad and is unique to railroads. For a complete
form and instructions for earlier tax years. All revisions are description, see Regulations section 1.45G-1(b)(7).
available at IRS.gov/Form8900. Railroad-related services. Railroad-related services are
services that are provided directly to, and are unique to, a
General Instructions railroad and that relate to railroad shipping, loading and
unloading of railroad freight, or repairs of rail facilities or
Who Must File railroad-related property. For examples of what are and
Eligible taxpayers use Form 8900 to claim the railroad what are not railroad-related services, see Regulations
track maintenance credit (RTMC) for qualified railroad section 1.45G-1(b)(8).
track maintenance expenditures (QRTME) paid or Eligible railroad track. Eligible railroad track is railroad
incurred during the tax year. If you are an assignor of miles track located within the United States that is owned or
of eligible railroad track, you must file Form 8900 even if leased by a Class II or Class III railroad at the close of its
you do not claim any RTMC. See the instructions for tax year. The railroad is treated as owning the railroad
line 3b for the additional information that must be provided track if it is subject to depreciation under section 167 by
by assignors. the railroad. Double track is treated as multiple lines of
Partnerships and S corporations must file this form to railroad track, rather than as a single line of railroad track.
claim the credit. All other taxpayers are not required to That is, 1 mile of single track is 1 mile, but 1 mile of double
complete or file this form if their only source for this credit track is 2 miles.
is a partnership or S corporation. Instead, they can report Qualifying railroad structure. Qualifying railroad
this credit directly on line 4g in Part III of Form 3800, structure is property located within the United States that
General Business Credit. includes, in part, tunnels, bridges, and railroad track. For a
complete description, see Regulations section 1.45G-1(b)
Definitions (4).
Eligible taxpayers. Eligible taxpayers include the Qualified railroad track maintenance expenditures
following. (QRTME). QRTME are expenditures (whether or not
1. Any Class II or Class III railroad, as these terms are otherwise chargeable to a capital account) for
defined by the Surface Transportation Board. maintaining, repairing, and improving a qualifying railroad
structure that is owned or leased as of January 1, 2015, by
a Class II or Class III railroad. If you paid or incurred

Oct 5, 2023 Cat. No. 66497D

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QRTME during the tax year, you do not have to reduce An assigned mile of eligible railroad track need not
that QRTME by any amount of direct or indirect correspond to any specific mile of eligible railroad track for
reimbursement to which you are entitled from a Class II or which the eligible taxpayer actually pays or incurs the
Class III railroad which made an assignment of eligible QRTME. Further, an assignment requires no transfer of
railroad track to you. legal title or other indicia of ownership of the eligible
railroad track, and need not specify the location of any
Adjustments to Basis assigned mile of eligible railroad track. However, the
Some or all of the QRTME paid or incurred by an eligible following information must be provided for the assignment
taxpayer may be required to be capitalized as a tangible in the form of a statement attached to the tax return for the
asset or an intangible asset, if applicable. See tax year for which the assignment is made.
Regulations section 1.45G-1(e)(1). • The name and taxpayer identification number of each
assignee.
Use the amount of RTMC to reduce the basis of a
qualifying railroad structure (including railroad track) asset • The total number of miles of the assignor's eligible
railroad track.
or intangible asset, if applicable. The reduction is limited
to the amount of QRTME capitalized for the asset. For • The number of miles of eligible railroad track assigned
by the assignor for the tax year to the assignee.
further details, see Regulations section 1.45G-1(e)(2).
• The total number of miles of eligible railroad track
Member of Controlled Group or assigned by the assignor for the tax year to all assignees.

Business Under Common Control Line 3c
For purposes of figuring the credit, all members of a The following information must be provided for the
“controlled group of corporations” and all members of a assignment in the form of a statement attached to the tax
“group of businesses under common control” are treated return for the tax year for which the assignment is made.
as a single taxpayer. See Regulations section 1.45G-1(f) • The total number of miles of eligible railroad track
(2) for a definition of these terms. As a member, your assigned to the assignee for the assignee's tax year.
credit is determined on a proportionate basis to your share • Attestation that the assignee has in writing, and has
of the aggregate QRTME taken into account by the group retained as part of the assignee's records for purposes of
for the RTMC. Enter your share of the credit on line 5. Regulations section 1.6001-1(a), the following information
Attach a statement showing how your share of the credit from each assignor.
was figured, and write “See Attached” next to the entry 1. The name and taxpayer identification number of
space for line 5. each assignor.
2. The effective date of each assignment (treated as
Specific Instructions being made by the assignor at the end of its tax year) to
the assignee.
Line 1 3. The number of miles of eligible railroad track
Qualified railroad track maintenance expenditures must assigned by each assignor to the assignee for the tax year
be paid or incurred by an eligible taxpayer during the tax of the assignee.
year.
The payment by an eligible taxpayer, as an assignee, to Notes
a Class II or Class III railroad, as an assignor, in exchange • The assignee cannot reassign miles.
for an assignment of miles of eligible railroad track for • If the assignor, in its required statement (see the
purposes of the credit computation is treated as QRTME instructions for line 3b above), assigns more miles than it
paid or incurred by the assignee and not the assignor. has at the end of its tax year, the excess will be used to
reduce each assignee's allocation in the same proportion
Line 3a as the assignee's original allocation of miles bears in
(This line only applies to you if you are a Class II or Class relation to the total miles originally assigned.
III railroad.)
Line 6
Enter the number of eligible railroad track miles (see Enter total qualified railroad track maintenance credits
Eligible railroad track, earlier) owned or leased by you. from:
• Schedule K-1 (Form 1065), Partner's Share of Income,
Line 3b Deductions, Credits, etc., box 15 (code AJ); and
(This line only applies to you if you are a Class II or Class • Schedule K-1 (Form 1120-S), Shareholder's Share of
III railroad.) Income, Deductions, Credits, etc., box 13 (code AJ).
You must reduce on line 3b the number of miles of Partnerships and S corporations report the above
eligible railroad track entered on line 3a that you assigned credits on line 6. All other filers figuring a separate credit
to another eligible taxpayer for purposes of the credit on earlier lines also report the above credits on line 6. All
computation. You can only assign each mile of railroad others not using earlier lines to figure a separate credit
track once during your tax year. Each mile of railroad track can report the above credits directly on Form 3800, Part
you assign is treated as being assigned on the last day of III, line 4g.
your tax year.

-2- Instructions for Form 8900 (December 2023)

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Paperwork Reduction Act Notice.                  We ask for the information on this form to carry out the Internal Revenue laws of the 
United States. You are required to give us the information. We need it to ensure that you are complying with these laws 
and to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act 
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be 
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax 
returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden 
for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123 
and is included in the estimates shown in the instructions for their individual and business income tax return. The 
estimated burden for all other taxpayers who file this form is shown below.
Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 hr., 4 min.
Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      0 hr., 53 min.
Preparing and sending the form to the IRS        . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1 hr., 00 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, 
we would be happy to hear from you. See the instructions for the tax return with which this form is filed.

Instructions for Form 8900 (December 2023)                                         -3-

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