Railroad Track Maintenance Tax Credit—45G Tax Credit: Mark Mickelson & Company

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    Real Estate Development

    Environmental Incentives &
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   Mark Mickelson & Company
   101 N. Main Ave.
   Suite 217
   Sioux Falls, SD 57104
   Phone: 605-977-4873
   Fax: 605-335-4982
   Email@mickco.com

45G Tax Credit

In January of 2005, the United States Congress enacted the Railroad Track Maintenance Tax Credit—section 45G of the U.S. Tax Code. This legislation allows shippers, contractors and suppliers of short line railroads to transfer credits against the total amount of federal taxes owed by their shippers, contractors and suppliers under certain circumstances and is based upon the investment made in track maintenance and qualifying upgrades to roadbeds, bridges and other related railroad structures.In January of 2005, the United States Congress enacted the Railroad Track Maintenance Tax Credit—section 45G of the U.S. Tax Code. This legislation allows shippers, contractors and suppliers of short line railroads to transfer credits against the total amount of federal taxes owed by their shippers, contractors and suppliers under certain circumstances and is based upon the investment made in track maintenance and qualifying upgrades to roadbeds, bridges and other related railroad structures.

Mickelson & Company advises clients on optimizing the value of this credit by:
- Promoting the track improvement program opportunity
- Educating the railroad and potential counter-parties on tax and
commercial issues
- Advising the railroad on selecting an appropriate counter-party
- Assisting in key negotiations

Proven Track Record
Mark Mickelson & Company has a proven track record with 45G Tax Advisory work and is a member of the American Short Line and Regional Railroad Association (ASLRRA) and the New England Railroad Club. We have forged an advisory relationship with Watco short line railroad and its affiliates out of Pittsburg, Kansas and advised them on $126 million dollar joint track improvement program from 2005-2009. We have also advised the Dakota, Minnesota, and Eastern Railroad (DM&E) and its affiliate the Iowa, Chicago, & Eastern Railroad (IC&E) on their multi-million dollar, joint track expansion and updgrade.

“Your assistance was invaluable in capturing the value of the 45G tax credit and allowing us to make the resulting significant additional track improvements.”

—Rick Baden, EVP and Chief Financial Officer, Watco Companies, Inc.

Mickelson & Company Advantage
Mickelson & Company bases its compensation on your success. That’s why we work especially hard for our clients when advising them on the 45G tax credit. Mark Mickelson & Company has constructed a railroad checklist and built an extensive shipper and contractor database as tools to better help us advise our railroad clients and their affiliates.

Railroad Clients

Aberdeen & Rockfish Railroad Company
Alabama Southern Railroad, Inc.
Allegheny Valley Railroad
Appalachian and Ohio Railroad
Arkansas Southern Railroad
B & H Rail Corp.
Boston & Maine Corporation
Buckingham Branch Railroad Company
Camp Chase Railroad
Caney Fork & Western Railroad
Carload Express, Inc.
Cedar American Rail Holdings, Inc.
Central Midland Railway Company
Central Washington Railroad Company
CGX, Inc.
Cimarron Valley Railroad, LLC
Columbia Basin Railroad Company, Inc.
Dakota, Minnesota & Eastern Railroad Corporation
Delaware-Lackawanna Railroad
Depew, Lancaster & Western Railroad
Eastern Idaho Railroad, Inc.
Falls Road Railroad
Farmrail Corporation
Farmrail System, Inc.
Finger Lakes Railway Corp.
Genessee Valley Transportation Co., Inc.
Georgia & Florida Railway, Inc.
Grainbelt Corporation
The Great Northwest Railroad, Inc.
Idaho Northern & Pacific Railroad Company
Illinois Railway, Inc.
Iowa Northern Railway Company
Iowa, Chicago & Eastern Railroad Corporation
Iron Horse Resources, Inc.
Juniata Valley Railroad Company
Kansas & Oklahoma Railroad, Inc.
Kaw River Railroad, Inc.
Lake States Railway Corp.
Livonia, Avon & Lakeville Railroad
Louisisana Southern Railroad, Inc.
Lowville & Beaver Railroad

Lycoming Valley Railroad Company
Maine Central Railroad Company
Minnesota Southern Railway, Inc.
Mission Mountain Railroad, Inc.
Mississippi Tennessee Railroad, LLC
Mississsippi Southern Railroad, Inc.
Mohawk, Adirondack & Northern Railroad
Montreal, Maine & Atlantic Railroad
Nebraska Central Railroad Company
Nebraska, Kansas, & Colorado Railway, Inc.
New Orleans & Gulf Coast Railway Company
Nittany & Bald Eagle Railroad Company
North Shore Railrroad Company
OmniTRAX, Inc.
Palouse River & Coulee City Railroad, Inc.
Pan Am Railways, Inc.
Pee Dee River Railway
Pennsylvania & Southwestern Railroad, Inc.
Portland Terminal Railway Company
Progressive Rail Incorporated
Red River Valley & Western Railroad Company
Rio Grande Pacific Corporation
Rio Valley Switching Company
Shamokin Valley Railroad Company
Sierra Northern Railway
South Kansas & Oklahoma Railroad, Inc.
Southern Switching Company
Southwest Pennsylvania Railroad
Southwestern Railroad, Inc.
Springfield Terminal Railway Company
Stillwater Central Railroad, Inc.
The Western Group, LLC
Timber Rock Railroad, Inc.
Union County Industrial Railroad Company
Watco Companies, Inc.
Wellsboro & Corning Railroad Company
Western New York & Pennsylvania Railroad
Wichita, Tillman & Jackson Railway Company
Yellowstone Valley Railroad, Inc.