Oregon Administrative Rules
Chapter 741 - DEPARTMENT OF TRANSPORTATION, RAIL DIVISION
Division 30 - STANDARDS TO DETERMINE PROJECT ELIGIBILITY AND APPLICATION PROCECURES FOR SHORTLINE RAILROAD REHABILITATION TAX CREDITS
Section 741-030-0030 - Preliminary Certification Applicant Eligibility

(1) To be eligible for preliminary certification, the applicant must be a short line railroad.

(2) The applicant must own or lease infrastructure located in Oregon.

(3) The applicant's rehabilitation project costs must be directly related to the work necessary to maintain, reconstruct or replace infrastructure in Oregon and be described in the application with quantities, cost types (materials, labor and equipment), and with estimated costs.

(4) The applicant cannot apply for a tax credit for rehabilitation project costs that are funded by or used to qualify for any state or federal grants, or costs that are used to qualify for a federal tax credit.

(5) Regardless of whether the applicant applies for the federal tax credit under section 45G of the Internal Revenue Code, the amount applicant is eligible to qualify for under the federal tax credit shall be deducted from the applicant's rehabilitation project costs before calculating the applicant's Oregon tax credit.

Example: Acme Railroad owns (or leases) 100 miles of mainline track in Oregon. One year, Acme spends $1,000,000 in railroad rehabilitation project costs.

$3,500 x 100 miles / 0.40 = $875,000 (the portion of its project costs which would qualify Acme for its maximal federal tax credit of $350,000).

$1,000,000 - $875,000 = $125,000 (the remainder which can be used in applying for the Oregon tax credit).

In this example, Acme would be eligible for a $62,500 Oregon tax credit (50% of $125,000).