To bridge the digital divide in rural areas.

Summary: Rural America Digital Accessibility Act - Authorizes the Secretary of Commerce to make grants or guarantee loans in order to facilitate the deployment by the private sector of broadband telecommunications networks and capabilities (including wireless and satellite services) to underserved rural areas. Limits to $100 million the total amount of such grants and loan guarantees.Requires the Director of the National Science Foundation to research the enhancement or facilitation of broadband telecommunications services in rural and other remote areas, as well as Internet access through such services.Amends the Internal Revenue Code to provide a tax credit to holders of qualified technology bonds (bonds representing an investment in projects to expand such telecommunications services). Sets a national technology bond limitation of $100 million for each of FY 2002 through 2006, and zero thereafter (with an exception) to be allocated by the Secretary among the qualified projects designated each year.Directs the Secretary to provide financial assistance for the establishment and support of regional centers for the commercial use of advanced technologies by small and medium-sized businesses.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural America Digital Accessibility 
Act''.

SEC. 2. GRANTS TO FACILITATE DEPLOYMENT OF BROADBAND TELECOMMUNICATIONS 
              CAPABILITIES TO UNDERSERVED RURAL AREAS.

    (a) In General.--In order to facilitate the deployment by the 
private sector of broadband telecommunications networks and 
capabilities (including wireless and satellite networks and 
capabilities) to underserved rural areas, the Secretary of Commerce (in 
this section, referred to as the ``Secretary'') may--
            (1) make grants to eligible recipients for that purpose;
            (2) guarantee loans, either whole or in part, of eligible 
        recipients the proceeds of which are to be used for that 
        purpose; or
            (3) carry out activities under both paragraphs (1) and (2).
    (b) Eligible Recipients.--For purposes of this section, an eligible 
recipient of a grant or loan guarantee under subsection (a) is any 
person or entity selected by the Secretary in accordance with such 
procedures as the Secretary shall establish.
    (c) Underserved Rural Areas.--The Secretary shall identify the 
areas that constitute underserved rural areas for purposes of this 
section.
    (d) Emphasis on Particular Capabilities.--In selecting a person or 
entity as an eligible recipient of a grant or loan guarantee under 
subsection (a), the Secretary shall give particular emphasis to persons 
or entities that propose to use the grant or the proceeds of the loan 
guaranteed, as the case may be, to leverage non-Federal resources to do 
one or more of the following:
            (1) Provide underserved rural areas with access to Internet 
        service by local telephone.
            (2) Demonstrate new models or emerging technologies to 
        bring broadband telecommunications services to underserved 
        rural areas on a cost-effective basis.
            (3) Use broadband telecommunications services to stimulate 
        economic development, such as providing connections between and 
        among industrial parks located in such areas and providing 
        high-speed telecommunications service links to small business 
        incubators.
    (e) Consultation.--The Secretary may consult with the Federal 
Communications Commission in carrying out activities under this 
section.
    (f) Limitation on Amount.--The amount of any grants made under this 
section, and the cost (as defined in section 502(5) of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a(5)) of any loans guaranteed 
under this section, may not, in the aggregate, exceed $100,000,000.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated for the Department of Commerce for purposes of grants and 
loan guarantees under this section $100,000,000 for fiscal year 2002, 
and such sums as are necessary for each fiscal year thereafter.

SEC. 3. RESEARCH ON ENHANCEMENT OF BROADBAND TELECOMMUNICATIONS 
              SERVICES.

    (a) In General.--The Director of the National Science Foundation 
(in this section, referred to as the ``Director'') shall carry out 
research on the following:
            (1) Means of enhancing or facilitating the availability of 
        broadband telecommunications services in rural areas and other 
        remote areas.
            (2) Means of facilitating or enhancing access to the 
        Internet through broadband telecommunications services.
    (b) Scope of Authority.--The Director may carry out research under 
subsection (a) within the National Science Foundation or pursuant to 
such grants, agreements, or other arrangements as the Director 
considers appropriate.
    (c) Results of Research.--The Director shall make available to the 
public, in such manner as the Director considers appropriate, the 
results of any research carried out under this section.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated for the National Science Foundation for purposes of 
activities under this section $25,000,000 for fiscal year 2002, and 
such sums as are necessary for each fiscal year thereafter.

SEC. 4. TAX CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to credits against tax) is 
amended by adding at the end the following new subpart:

 ``Subpart H--Nonrefundable Credit for Holders of Qualified Technology 
                                 Bonds

``Sec. 54. Credit to holders of qualified technology bonds.

``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED TECHNOLOGY BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified technology bond on a credit allowance date of such bond which 
occurs during the taxable year, there shall be allowed as a credit 
against the tax imposed by this chapter for such taxable year the 
amount determined under subsection (b).
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any qualified technology 
        bond is the amount equal to the product of--
                    ``(A) the credit rate determined by the Secretary 
                under paragraph (2) for the month in which such bond 
                was issued, multiplied by
                    ``(B) the face amount of the bond held by the 
                taxpayer on the credit allowance date.
            ``(2) Determination.--During each calendar month, the 
        Secretary shall determine a credit rate which shall apply to 
        bonds issued during the following calendar month. The credit 
        rate for any month is the percentage which the Secretary 
        estimates will permit the issuance of qualified technology 
        bonds without discount and without interest cost to the issuer.
    ``(c) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under this part 
        (other than this subpart and subpart C).
    ``(d) Qualified Technology Bond.--For purposes of this part--
            ``(1) In general.--The term `qualified technology bond' 
        means any bond issued as part of an issue if--
                    ``(A) 95 percent of more of the proceeds of such 
                issue are to be used for any or a series of qualified 
                projects,
                    ``(B) the bond is issued by a State or local 
                government within the jurisdiction of which such 
                project is located,
                    ``(C) the issuer designates such bond for purposes 
                of this section,
                    ``(D) certifies that it has obtained the written 
                approval of the Secretary of Commerce for such project, 
                and
                    ``(E) the term of each bond which is part of such 
                issue does not exceed 15 years.
            ``(2) Qualified project.--
                    ``(A) In general.--The term `qualified project' 
                means a project--
                            ``(i) to expand broadband 
                        telecommunications services in an area within 
                        the jurisdiction of a State or local 
                        government,
                            ``(ii) which is nominated by such State or 
                        local government for a designation as a 
                        qualified project, and
                            ``(iii) which the Secretary of Commerce, 
                        after consultation with the Secretary of 
                        Housing and Urban Development designates as a 
                        qualified project or a series of qualified 
                        projects.
                    ``(B) Designation preferences.--With respect to 
                designations under this section, preferences shall be 
                given to--
                            ``(i) nominations of projects involving 
                        underserved urban or rural areas lacking access 
                        to high-speed Internet connections, and
                            ``(ii) nominations reflecting partnerships 
                        and comprehensive planning between State and 
                        local governments and the private sector.
    ``(e) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national technology 
        bond limitation for each calendar year. Such limitation is 
        $100,000,000 for 2002, 2003, 2004, 2005, and 2006, and, except 
        as provided in paragraph (4), zero thereafter.
            ``(2) Allocation of limitation.--The national technology 
        bond limitation for a calendar year shall be allocated by the 
        Secretary among the qualified projects designated for such 
        year.
            ``(3) Designation subject to limitation amount.--The 
        maximum aggregate face amount of bonds issued during any 
        calendar year which may be designated under subsection (d)(1) 
        with respect to any qualified project shall not exceed the 
        limitation amount allocated to such project under paragraph (2) 
        for such calendar year.
            ``(4) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the national technology limitation amount, 
                exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (d)(1) with 
                respect to qualified projects,
        the national technology limitation amount for the following 
        calendar year shall be increased by the amount of such excess.
    ``(f) Other Definitions.--For purposes of this subpart--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Credit allowance date.--The term `credit allowance 
        date' means, with respect to any issue, the last day of the 1-
        year period beginning on the date of issuance of such issue and 
        the last day of each successive 1-year period thereafter.
            ``(3) State.--The term `State' means the several States and 
        the District of Columbia.
    ``(g) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (c)) and the amount so 
included shall be treated as interest income.
    ``(h) Other Special Rules.--
            ``(1) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(2) Bonds held by regulated investment companies.--If any 
        qualified technology bond is held by a regulated investment 
        company, the credit determined under subsection (a) shall be 
        allowed to shareholders of such company under procedures 
        prescribed by the Secretary.
            ``(3) Treatment for estimated tax purposes.--Solely for 
        purposes of sections 6654 and 6655, the credit allowed by this 
        section to a taxpayer by reason of holding a qualified 
        technology bond on a credit allowance date shall be treated as 
        if it were a payment of estimated tax made by the taxpayer on 
        such date.
            ``(4) Reporting.--Issuers of qualified technology bonds 
        shall submit reports similar to the reports required under 
        section 149(e).''.
    (b) Reporting.--Subsection (d) of section 6049 of the Internal 
Revenue Code of 1986 (relating to returns regarding payments of 
interest) is amended by adding at the end the following new paragraph:
            ``(8) Reporting of credit on qualified technology bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(g) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(f)(2)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary may 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''.
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new item:

        ``Subpart H. Nonrefundable Credit for Holders of Qualified 
                            Technology Bonds.''.
            (2) Section 6401(b)(1) of such Code is amended by striking 
        ``and G'' and inserting ``G, and H''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2001.

SEC. 5. GRANTS FOR TECHNOLOGY EXTENSION.

    (a) Purpose.--It is the purpose of this section--
            (1) to encourage meaningful use of the most advanced 
        available technologies by small businesses and medium-sized 
        businesses to the maximum extent possible to improve the 
        productivity of those businesses and thereby to promote 
        economic growth; and
            (2) to promote regional partnerships between educational 
        institutions and businesses to develop such technologies and 
        products in the surrounding areas.
    (b) Grant Program.--To achieve the purpose of this section, the 
Secretary of Commerce (in this section, referred to as the 
``Secretary'') shall carry out a program to provide, through grants, 
financial assistance for the establishment and support of regional 
centers for the commercial use of advanced technologies by small 
businesses and medium-sized businesses.
    (c) Eligibility.--An entity is eligible to receive a grant as a 
regional center under this section if the entity--
            (1) is affiliated with a United States-based institution or 
        organization that is operated on a not-for-profit basis, or any 
        combination of two or more of such institutions or 
        organizations;
            (2) offers to enter into an agreement with the Secretary to 
        function as a regional center for the commercial use of 
        advanced technologies for the purpose of this section within a 
        region determined appropriate by the Secretary; and
            (3) demonstrates that it has the capabilities necessary to 
        achieve the purpose of this section through its operations as a 
        center within that region.
    (d) Selection of Applicants.--
            (1) Competitive process.--The Secretary shall use a 
        competitive process for the awarding of grants under this 
        section and, under that process, select recipients of the 
        grants on the basis of merit, with priority given to 
        underserved areas.
            (2) Applications for grants.--The Secretary shall prescribe 
        the form and content of applications required for grants under 
        this section.
    (e) Specific Activities of Regional Centers.--A regional center may 
use the proceeds of a grant under this section for any activity that 
carries out the purpose of this section, including such activities as 
the following:
            (1) Assist small businesses and medium-sized businesses to 
        address their most critical needs for the application of the 
latest technology, improvement of infrastructure, and use of best 
business practices.
            (2) In conjunction with institutions of higher education 
        and laboratories located in the region, transfer technologies 
        to small businesses and medium-sized businesses located in such 
        region to create jobs and increase production in surrounding 
        areas.
    (f) Additional Administrative Authorities.--
            (1) Cost-sharing.--The Secretary may require the recipient 
        of a grant to defray, out of funds available from sources other 
        than the Federal Government, a specific level of the operating 
        expenses of the regional center for which the grant is made.
            (2) Additional terms and conditions.--The Secretary, in 
        awarding a grant, may impose any other terms and conditions for 
        the use of the proceeds of the grant that the Secretary 
        determines appropriate for carrying out the purposes of this 
        section and to protect the interests of the United States.
    (g) Definitions of Small Business and Medium-Sized Business.--
            (1) Secretary to prescribe.--The Secretary shall prescribe 
        the definitions of the terms ``small business'' and ``medium-
        sized business'' for the purpose of this section.
            (2) Small business standards.--In defining the term ``small 
        business'', the Secretary shall apply the standards applicable 
        for the definition of the term ``small-business concern'' under 
        section 3 of the Small Business Act (15 U.S.C. 632).
    (h) Regulations.--The Secretary shall prescribe regulations for the 
grant program administered under this section.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated for the Department of Commerce for carrying out this 
section $125,000,000 for fiscal year 2002, and such sums as are 
necessary for each fiscal year thereafter.