Broadband Access Equality Act of 2009 - Amends the Internal Revenue Code to allow a general business tax credit for broadband property installed in underserved and rural areas. Allow a 50% credit for the cost of such property installed in areas in which not more than the greater of 5% of households or 20 households have broadband access and a 30% credit for all other underserved and rural areas. Increases by 10% the rate of such credit for high speed broadband service.
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 691 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 691
To amend the Internal Revenue Code of 1986 to provide a credit against
income tax for businesses furnishing broadband services to underserved
and rural areas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 26, 2009
Mr. Meek of Florida introduced the following bill; which was referred
to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit against
income tax for businesses furnishing broadband services to underserved
and rural areas.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Broadband Access Equality Act of
2009''.
SEC. 2. CREDIT FOR PROPERTY USED TO FURNISH BROADBAND SERVICES IN
UNDERSERVED AND RURAL AREAS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by inserting after section 45Q the following new
section:
``SEC. 45R. PROPERTY USED TO FURNISH BROADBAND SERVICES IN UNDERSERVED
AND RURAL AREAS.
``(a) In General.--For purposes of section 38, the broadband
services credit determined under this section is an amount equal to the
applicable percentage of the cost of each qualified broadband property
placed in service during the taxable year.
``(b) Applicable Percentage.--
``(1) In general.--For purposes of subsection (a), the
applicable percentage is--
``(A) 50 percent for qualified broadband property
for underserved and rural areas in which, on the date
of the enactment of this section, not more than the
greater of--
``(i) 5 percent of the households, or
``(ii) 20 households,
have broadband access, and
``(B) 30 percent for qualified broadband property
for underserved and rural areas which, on such date,
are not described in paragraph (1).
``(2) Increased percentage where high speed service
provided.--The applicable percentage determined under paragraph
(1) shall be increased by 10 percentage points for qualified
broadband property providing transmission service at a speed
which is not less than--
``(A) except in the case of commercial mobile radio
services, 50 megabits per second downstream and 20
megabits per second upstream, and
``(B) in the case of commercial mobile radio
services, 10 megabits per second downstream and 2
megabits per second upstream.
``(c) Definitions.--For purposes of this section--
``(1) Qualified broadband property.--The term `qualified
broadband property' means section 1245 property (as defined in
section 1245(a)(3))--
``(A) which is used to provide broadband services
in underserved or rural areas to purchasers of such
services,
``(B) which is--
``(i) tangible property (to which section
168 applies), or
``(ii) computer software (as defined in
section 197(e)(3)(B)) which is described in
section 197(e)(3)(A) and to which section 167
applies, and
``(C) the original use of which commences with the
taxpayer.
Such term shall not include any property described in section
50(b).
``(2) Broadband.--The term `broadband' means an Internet
Protocol-based transmission service (at a speed which is not
less than 5 megabits per second downstream and 1 megabit per
second upstream) that enables users to send and receive voice,
video, data, graphics, or a combination, without regard to any
transmission media or technology.
``(3) Underserved area.--The term `underserved area'
means--
``(A) any census tract that is located in--
``(i) an empowerment zone or enterprise
community designated under section 1391, or
``(ii) the District of Columbia Enterprise
Zone established under section 1400, or
``(B) any census tract--
``(i) the poverty level of which is at
least 30 percent (based on the most recent
census data), and
``(ii) the median family income of which
does not exceed--
``(I) in the case of a census tract
located in a metropolitan statistical
area, 70 percent of the greater of the
metropolitan area median family income
or the statewide median family income,
and
``(II) in the case of a census
tract located in a nonmetropolitan
statistical area, 70 percent of the
nonmetropolitan statewide median family
income.
``(4) Rural area.--The term `rural area' means any census
tract outside a metropolitan statistical area (as defined by
the Office of Management and Budget).
``(5) Regulated entities.--The credit determined under
subsection (a) may not be used to reduce a taxpayer's cost of
service, but may be used to reduce rate base, provided that
such reduction is restored not less rapidly than ratably. For
purposes of determining ratable restorations to rate base, the
period of time used in computing depreciation expense for
purposes of reflecting operating results in the taxpayer's
regulated books of account shall be used.
``(d) Recapture in Case of Dispositions, etc.--Under regulations
prescribed by the Secretary--
``(1) Early disposition.--If, before the close of the
period to which section 50(a)(1) applies, qualified broadband
property is disposed of or ceases to be used to provide
broadband services to any underserved area, then the tax under
this chapter for the taxable year in which such disposition or
cessation occurs shall be increased by the recapture percentage
(determined under the table contained in section 50(a)(1)(B))
of the aggregate credits allowed under subsection (a) for all
prior taxable years.
``(2) Subsection not to apply in certain cases.--Rules
similar to the rules of section 50(a)(4) shall apply for
purposes of paragraph (1).
``(e) Other Rules To Apply.--Rules similar to the rules of
paragraphs (3), (4), and (5) of section 179(d) shall apply for purposes
of this section.
``(f) Basis Reduction.--Rules similar to the rules of sections
50(c) (other than paragraph (3)) and 1016(a)(19) shall apply for
purposes of this section.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code is amended by striking ``plus'' at the end
of paragraph (34), by striking the period at the end of paragraph (35)
and inserting ``, plus'', and by adding at the end the following new
paragraph:
``(36) the broadband services credit determined under
section 45R(a).''.
(c) Clerical Amendment.--The table of sections subpart D of part IV
of subchapter A of chapter 1 of such Code is amended by adding at the
end the following new item:
``Sec. 45R. Property used to furnish broadband services in underserved
and rural areas.''
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of enactment of this
Act in taxable years ending after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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