Section 432. Railroad participation in the program

The level of railroad
  participation  in  the  program  for   the   period   nineteen   hundred
  eighty-seven  through  nineteen  hundred  ninety-one shall depend on the
  estimated tax abatement as computed by the state board of real  property
  services  pursuant  to  either  subdivision  (c) of section four hundred
  eighty-nine-j or subdivision (c) of section four hundred  eighty-nine-hh
  of  the  real  property tax law. The nature of railroad participation in
  the program, as set forth  below,  shall  be  based  on  the  railroad's
  economic  or  exemption  factor  under  title  two-A  and title two-B of
  article four of the real  property  tax  law,  as  applicable,  and  the
  railroad's  size classification as determined by the interstate commerce
  commission, based on railroad system gross revenues. Regardless  of  the
  level  of  their  participation, all railroads shall annually certify to
  the commissioner that to the best of their  knowledge  and  belief  such
  railroads are in substantial compliance with the terms and conditions of
  any contracts they may have with the department.
    1.  Class  I  railroads  with  economic  factors  greater than fifteen
  percent and other railroads with exemption factors less than eighty-five
  percent shall undertake capital improvement projects which  augment  the
  railroad's normal capital program.
    2.  Class  I  railroads with economic factors equal to fifteen percent
  shall expand their maintenance-of-way programs over and above the  level
  the railroad would have otherwise undertaken.
    3. Other railroads with exemption factors equal to eighty-five percent
  shall  apply  their  additional tax abatement toward the continuation of
  service, in a manner determined by railroad management.
    4. Class I railroads over whose facilities  intercity  rail  passenger
  service  is  operated  shall  include  projects  which will benefit such
  service and shall demonstrate a willingness to  cooperate  in  achieving
  public and private improvement initiatives.
    5.  Further, all railroads participating in the program are encouraged
  to select projects which complement  or  build  upon  railroad  projects
  supported with public funds.