H. R. 3999
IN THE HOUSE OF REPRESENTATIVES
July 25, 2019
Mr. Bergman (for himself, Mr. Abraham, and Mr. Gosar) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow for a credit against tax for placing in service qualified broadband property to expand the level of broadband service in a qualified rural census tract.
This Act may be cited as the
Rural Broadband Connectivity Act of 2019.
Rural Broadband Tax Credit
Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after subsection 48C the following new section:
Rural Broadband Credit
For the purposes of section 38, the rural broadband credit for any taxable year is an amount equal to 30 percent of the basis of qualified broadband property placed in service by the taxpayer during such taxable year.
Cap on credit amount
The amount of the credit allowable to a taxpayer under subsection (a) for any property for a taxable year shall not exceed an amount equal to the product of—
the value of the number of qualified potential customers served by the qualifying broadband project for which such property is necessary, multiplied by
Qualified potential customer
For purposes of this section, the term qualified potential customer means, with respect to a taxpayer, an individual—
who resides in a qualified rural census tract, and
whom such taxpayer demonstrates to the satisfaction of the Secretary would upon request be provided broadband service by the taxpayer for a customary charge for commencing broadband service of no more than $1,000.
Qualified broadband property
For the purposes of this section—
The term qualified broadband property means property necessary for a qualifying broadband project.
Qualifying broadband project
The term qualifying broadband project means any project designed to expand the number of individuals with broadband service in a qualified rural census tract.
The term broadband service means broadband service (as defined in section 601(b) of the Rural Electrification Act of 1936) that meets the minimum acceptable level for such service (as established by the Secretary of Agriculture pursuant to section 601(e) of the Rural Electrification Act of 1936).
Qualified rural census tract
The term qualified rural census tract means a census tract designated not later than the last day of the fourth month beginning after the date of the enactment of this section by the Secretary (in consultation with the Chairman of the Federal Communications Commission, the Assistant Secretary of Commerce for Communications and Information who is head of the National Telecommunications and Information Administration, and the Secretary of Agriculture) as—
having less than 50 percent of residents with access to broadband service, and
being underserved and not at risk of experiencing duplicative service expansion or overbuilding of existing broadband infrastructure.
Carryover of certain amounts
If, for the taxable year, the amount which (but for subsection (b)) would have been taken into account under subsection (a) exceeds the limitation of subsection (b), then the amount of such excess shall be taken into account under subsection (a) for the succeeding taxable year.
This section shall not apply to property placed in service after the last day of the tenth calendar year beginning after the date of the enactment of this section.
Paragraph (6) of section 46 of such Code is amended to read as follows:
the rural broadband credit.
The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:
Sec. 48D. Rural Broadband Credit.
The amendments made by this section shall apply to property placed in service after the last day of the fourth month beginning after the date of the enactment of this Act.