Railroad Modernization Act Credit Claiming Procedures

The Rail Credit authorized under the Railroad Modernization Act must be pre-certified via an online portal through My Alabama Taxes (MAT) before the taxpayer can claim the credit on their Alabama income tax return.

Prerequisites for filing an online Rail Credit claim through MAT:

• Certification from Alabama Department of Commerce awarding the tax credit.

Procedures for filing an online Rail Credit claim through MAT:

• Log in to My Alabama Taxes using your login credentials.
• Once logged in, navigate to Pass-through Entity or Business Income Tax under Accounts.
• Under the ‘I Want to’ section, click on ‘Submit a Credit Claim’ and complete the following required fields:
  • • Credit Type – Select “Rail Credit” from the drop-down menu.
    • Filing Period – Enter the tax period in which the certified Rail Credit is placed in service.
    • Credit Amount – Enter the amount of the tax credit approved by the Alabama Department of Commerce.
    • Transfer Amount – If all or part of the credit will be transferred, enter the total transfer amount.
    • Attachments – The following attachments are required:
      1. For all claims – Certificate from the Alabama Department of Commerce awarding the tax credit.
      2. For transfer credit requests –
         1. Transfer statement (Form RC-TS).
         2. Executed transfer agreement.

Please review the information in full (and print a copy for your records). Once reviewed, submit the credit claim.

Once the Rail Credit claim is submitted through MAT, the Department of Revenue will review the claim. The Office of Economic Development may require additional information if the supporting documents are incomplete or not provided. Please note that lack of proper documentation to support the credit claim will delay the process. Once the Department approves the requested credit amount, the project owner will receive a web notice. The approved amount of the credit must be listed on the taxpayer’s income tax return at the time the return is filed. For further questions, please contact incentives@revenue.alabama.gov or call 334-242-1175.

NOTE! Transfers –The transfer cannot be completed until the transfer fees have been received. Please mail the transfer fee payment to: Alabama Department of Revenue, Commissioner’s Office, P.O. Box 327001, Montgomery, AL  36132. The transferee will receive written notification once the transfer has been processed.