SECTION 4. DEFINITIONS

The following definitions apply solely for purposes of this revenue procedure:

.01 Track Structure. “Track structure” means the combination of a taxpayer’s rail and other track material (OTM), ties, and ballast, which provides a track for rail cars and equipment powered by locomotives.

.02 Track Structure Expenditures. “Track structure expenditures” for a particular taxable year are the sum of the taxpayer’s expenditures for that year for current additions (including new track structure), operating items, and removal costs.

.03 Current Additions. “Current additions” are the amounts included in track structure expenditures that represent capital additions to the taxpayer’s track structure for financial reporting purposes and that are taken into account for federal income tax purposes ( see, e.g., §§ 404 and 461). Thus, for example, current additions do not include the assigned value of relay materials.

.04 New Track Structure. “New track structure” means the amounts included in track structure expenditures that reflect the taxpayer’s expenditures for (1) track structure laid where none previously existed; (2) existing track structure acquired by the taxpayer; or (3) track structure previously abandoned by the taxpayer that must be rehabilitated or improved to make it suit

.04 Special Rule for Certain Taxpay-

ers with Issue Under Consideration .05 Special Rule for Taxpayers Reclas-

sified as Class I Railroads .06 Changes Not Made under this Rev-

enue Procedure