by at least 8 percent, or (II) in the case of performance, the qualified freight railcar meets the requirements of the Association of American Railroads Standard S–286 or is modernized to meet the design standards set forth in final rule HM–251 of the Pipeline and Hazardous Materials Safety Administration (as amended by HM–251C). (C) Modernized The term modernized means a modification, retrofit, conversion or rebuild for the purpose of meeting capacity, fuel efficiency, or performance criteria identified in subparagraph (B)(ii). (8) Qualified freight railcar modernization expenditure The term qualified freight railcar significant improvement expenditure means any amount paid or incurred— (A) in connection with the modernization of a freight railcar resulting in such railcar being designated a qualified freight railcar, and (B) which is properly chargeable to a capital account with respect to such freight railcar. (9) Qualified facility The term qualified facility means a facility that is not owned by an entity that would be ineligible for an award of a contract or subcontract under 49 U.S.C. 5323(u) . (c) Special rules (1) Denial of double benefit No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter. (2) Credit treated as refundable In the case of any taxable year in which the taxpayer is allowed a credit under subsection (a)(1) and is unable to utilize such credit as an offset to their regular tax liability, the taxpayer may elect to have such credit treated as an overpayment and refunded to the taxpayer for such year. (3) Basis adjustment For purposes of this subtitle, if a credit is allowed under subsection (a)(1) with respect to any qualified freight railcar, the basis of such railcar shall be reduced by the amount of the credit so allowed. (4) Sale-leaseback For purposes of subsection (a)(1), if any qualified freight railcar is— (A) originally placed in service by a person after the date of the enactment of this