I 

117TH CONGRESS 

1ST SESSION H. R. 2201 

To provide tax credits to low- to moderate-income individuals for certain 

computer and education costs, to direct the Federal Communications 

Commission to modify the requirements for the Lifeline program to 

provide increased support, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2021 

Mr. DANNY K. DAVIS of Illinois introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to 

the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To provide tax credits to low- to moderate-income individuals 

for certain computer and education costs, to direct the 

Federal Communications Commission to modify the requirements for the Lifeline program to provide increased 

support, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Computer and Internet 

5 Access Equity Act’’. 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•HR 2201 IH

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to create a comprehensive initiative that will 

4 address the need for both computer equipment or 

5 devices and broadband/internet subscriptions to cre6 ate equity in marginalized communities, 

7 (2) to address the problem of ensuring that low 

8 and moderate-income school-age children, youth, and 

9 college students have access to computer technology 

10 before, during and after the pandemic, which is both 

11 a national concern and an education and equity 

12 issue, and 

13 (3) to create a $10,000 lifetime tax credit for 

14 computer costs for individuals ($20,000 for joint re15 turns) in low and moderate-income communities. 

16 Many individuals, especially students in elementary 

17 schools, are not familiar with completing homework 

18 in a computer environment. This legislation also pro19 vides 501(c)3 and 501(c)4 organizations and accred20 ited academic institutions with funding to provide 

21 training and technical support in the use of com22 puters and associated technology. 

23 SEC. 3. FINDINGS. 

24 Congress finds the following: 

25 (1) A PEW Research Center study revealed 

26 that while 58 percent of 8th graders in the United 


pbinns on DSKJLVW7X2PROD with BILLS
3 

•HR 2201 IH

1 States use a computer to complete homework, low 

2 and moderate-income and minority students use 

3 cellphones, public wi-fi, or are unable to do their 

4 homework. The Pew Research Center study noted 

5 that 35 percent of teens in the United States use a 

6 cell phone, and 12 percent use public wi-fi. Unfortu7 nately, 17 percent of teens in the United States are 

8 unable to complete their homework at all, with 25 

9 percent of Black students and students with a 

10 household income of less than $30,000 leading the 

11 digital homework gap. 

12 (2) The Southern Education Foundation re13 ported that 15 million to 16 million K–12 public 

14 school students are caught in the digital divide, in15 cluding more rural states with 40 to 50 percent of 

16 students in Alabama, Arkansas, Oklahoma, and Mis17 sissippi are seriously affected. Also, the SEF reports 

18 that Black, Latinx, and Native American students 

19 make up about 55 percent of disconnected students 

20 while representing about 40 percent of total stu21 dents. 

22 (3) As of March 2020, the United States Food 

23 and Nutrition Services reported that approximately 

24 37,000,000 people are receiving SNAP benefits. Of 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•HR 2201 IH

1 the 37,000,000 SNAP participants, 44 percent of 

2 participants were under 18 years old and school age. 

3 (4) The United States Food and Nutrition 

4 Services also reports that 20,000,000 young people 

5 receive free lunch in the nation’s schools. Also, in 

6 the United States, 72,000,000 people under 18 live 

7 in poverty. When linked to the PEW Research Cen8 ter data, this data is an indicator of many millions 

9 of low and moderate-income individuals without 

10 computers and internet subscriptions during the 

11 coronavirus pandemic. 

12 (5) The Education Journal reported in 2018 

13 that 1.2 million children are falling behind at school 

14 because they do not have access to an internet con15 nection at home. 

16 (6) Many experts agree two issues prevent the 

17 elimination of the digital poverty divide: 

18 (A) access to devices such as computers 

19 and tablets; and 

20 (B) Internet access or internet subscrip21 tions. 

22 (7) Pew research provided evidence of the need 

23 for digital literacy, stating in a new analysis that 59 

24 percent of parents with lower incomes who had chil25 dren in schools that were remote at the time said 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•HR 2201 IH

1 their children would likely face at least one of three 

2 digital obstacles. 

3 SEC. 4. INCREASED LIFELINE SUPPORT. 

4 (a) DEFINITIONS.—In this section: 

5 (1) COMMISSION.—The term ‘‘Commission’’ 

6 means the Federal Communications Commission. 

7 (2) TERMS DEFINED IN REGULATIONS.—The 

8 terms defined in section 54.400 of title 47, Code of 

9 Federal Regulations (or any successor regulation), 

10 have the meanings given those terms in that section. 

11 (b) REGULATIONS.—Not later than 14 days after the 

12 date of enactment of this Act, the Commission shall pro13 mulgate regulations to modify the requirements for the 

14 Lifeline program set forth in subpart E of part 54 of title 

15 47, Code of Federal Regulations (as in effect on the date 

16 of enactment of this Act) to provide for the following: 

17 (1) The amount of Lifeline support that a pro18 vider of Lifeline service may receive for providing 

19 such service to each qualifying low-income consumer 

20 shall be increased by the lesser of— 

21 (A) $83.33 per month; or 

22 (B) the amount needed to make the 

23 amount of Lifeline support received by the pro24 vider equal to the cost of providing such service, 

25 except that such cost may not exceed the cost 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•HR 2201 IH

1 to the provider of providing an equivalent level 

2 of voice telephony service or broadband internet 

3 access service (as applicable) to a consumer who 

4 does not receive Lifeline service. 

5 (2) The percentage of the Federal Poverty 

6 Guidelines (as specified in section 54.409(a)(1) of 

7 title 47, Code of Federal Regulations) at or below 

8 which a consumer’s household income must be in 

9 order for the consumer to constitute a qualifying 

10 low-income consumer on the basis of income shall be 

11 increased to 435 percent. 

12 (3) A provider of broadband internet access 

13 service shall not be required to be designated as an 

14 eligible telecommunications carrier under section 

15 214(e) of the Communications Act of 1934 (47 

16 U.S.C. 214(e)) in order to receive Lifeline support 

17 for providing such service to a qualifying low-income 

18 consumer. 

19 (c) DURATION.—The modifications made by the reg20 ulations promulgated under subsection (b) shall cease to 

21 have any force or effect on the date that is 12 years after 

22 the date on which the regulations are promulgated. 

23 (d) CONSUMER PROTECTIONS.— 

24 (1) IN GENERAL.—A provider of broadband 

25 internet access service that receives Lifeline support 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•HR 2201 IH

1 for providing such service to a qualified low-income 

2 consumer— 

3 (A) shall provide such service to the con4 sumer at a minimum speed of 25 megabits per 

5 second for downloads and 3 megabits per sec6 ond for uploads, which minimum speed shall be 

7 reevaluated and, if appropriate, increased by 

8 the Commission not less frequently than once 

9 every 3 years; 

10 (B) shall provide a level of customer serv11 ice to the consumer that is comparable to the 

12 customer service that the provider provides to 

13 consumers of broadband internet access service 

14 who do not receive Lifeline service; 

15 (C) shall offer such service to each quali16 fied low-income consumer in the designated 

17 service area of the provider; and 

18 (D)(i) shall advertise the availability of 

19 such service and the charges therefore using 

20 media of general distribution throughout the 

21 designated service area of the provider to in22 crease awareness among consumers (including 

23 non-English speaking consumers) that they may 

24 be eligible for such service; and 


pbinns on DSKJLVW7X2PROD with BILLS
8 

•HR 2201 IH

1 (ii) may partner with State agencies re2 sponsible for the provision of social assistance 

3 and service programs in conducting advertising 

4 under clause (i). 

5 (2) DESIGNATED SERVICE AREA.—A State com6 mission or the Commission, as applicable, shall es7 tablish a designated service area for a provider of 

8 broadband internet access service described in para9 graph (1) for purposes of that paragraph in the 

10 same manner as the State commission or Commis11 sion establishes a designated service area for a com12 mon carrier under paragraph (5) or (6), as applica13 ble, of section 214(e) of the Communications Act of 

14 1934 (47 U.S.C. 214(e)). 

15 SEC. 5. INTERNET EDUCATION AND TRAINING GRANT PRO16 GRAM. 

17 (a) DEFINITIONS.—In this section: 

18 (1) COMMISSION.—The term ‘‘Commission’’ 

19 means the Federal Communications Commission. 

20 (2) COMMUNITY-BASED ORGANIZATION.—The 

21 term ‘‘community-based organization’’ has the 

22 meaning given the term in section 3 of the Work23 force Innovation and Opportunity Act (29 U.S.C. 

24 3102). 


pbinns on DSKJLVW7X2PROD with BILLS
9 

•HR 2201 IH

1 (3) DIGITAL LITERACY.—The term ‘‘digital lit2 eracy’’ means the skills associated with using tech3 nology. 

4 (4) ELIGIBLE ENTITY.—The term ‘‘eligible enti5 ty’’ means— 

6 (A) a nonprofit organization; 

7 (B) a not-for-profit social welfare organiza8 tion; or 

9 (C) a community-based organization. 

10 (5) FEDERAL POVERTY GUIDELINES.—The 

11 term ‘‘Federal Poverty Guidelines’’ means the Fed12 eral Poverty Guidelines used for purposes of section 

13 54.409(a)(1) of title 47, Code of Federal Regula14 tions (or any successor regulation). 

15 (6) HOUSEHOLD.—The term ‘‘household’’ has 

16 the meaning given the term in section 54.400 of title 

17 47, Code of Federal Regulations (or any successor 

18 regulation). 

19 (7) INCOME.—The term ‘‘income’’ has the 

20 meaning given the term in section 54.400 of title 47, 

21 Code of Federal Regulations (or any successor regu22 lation). 

23 (8) NONPROFIT ORGANIZATION.—The term 

24 ‘‘nonprofit organization’’ means an organization de25 scribed in section 501(c)(3) of the Internal Revenue 


pbinns on DSKJLVW7X2PROD with BILLS
10 

•HR 2201 IH

1 Code of 1986 and exempt from tax under section 

2 501(a) of such Code. 

3 (9) NOT-FOR-PROFIT SOCIAL WELFARE ORGANI4 ZATION.—The term ‘‘not-for-profit social welfare or5 ganization’’ means an organization described in sec6 tion 501(c)(4) of the Internal Revenue Code of 1986 

7 and exempt from tax under section 501(a) of such 

8 Code. 

9 (b) GRANTS AUTHORIZED.—Not later than 100 days 

10 after the date of enactment of this Act, the Commission 

11 shall establish a program to make grants on a competitive 

12 basis to eligible entities to develop and carry out an inter13 net safety education or training program. 

14 (c) APPLICATIONS.—An eligible entity that wishes to 

15 receive a grant under this section shall submit to the Com16 mission an application at such time, in such manner, and 

17 containing such information as the Commission may re18 quire. 

19 (d) USE OF FUNDS.—An eligible entity that receives 

20 a grant under this section shall use grant funds to— 

21 (1) develop a program to provide internet edu22 cation and training, which may address cyberbully23 ing, online privacy, cybersecurity, and digital lit24 eracy, to individuals living in households with an inVerDate Sep 11 2014 01:10 May 21, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2201.IH H2201

pbinns on DSKJLVW7X2PROD with BILLS
11 

•HR 2201 IH

1 come at or below 435 percent of the Federal Poverty 

2 Guidelines for households of the applicable size; and 

3 (2) provide such education or training to such 

4 individuals through such program. 

5 (e) REPORTS.— 

6 (1) REPORTS TO COMMISSION.—Not later than 

7 3 years after the date on which an eligible entity re8 ceives a grant under this section, the eligible entity 

9 shall publish and submit to the Commission a report 

10 that— 

11 (A) describes the use of the grant by the 

12 eligible entity, including the number of individ13 uals served by the eligible entity using grant 

14 funds; 

15 (B) describes the progress of the eligible 

16 entity toward fulfilling the objectives for which 

17 the grant was awarded; and 

18 (C) includes any additional information re19 quired by the Commission. 

20 (2) REPORT TO CONGRESS.—Not later than 5 

21 years after the date of enactment of this Act, the 

22 Commission shall publish and submit to Congress a 

23 report that— 


pbinns on DSKJLVW7X2PROD with BILLS
12 

•HR 2201 IH

1 (A) summarizes the data from the reports 

2 that the Commission has received under para3 graph (1); and 

4 (B) assesses the effectiveness and cost-ef5 fectiveness of the grant program established 

6 under this section. 

7 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated such sums as may be 

9 necessary to carry out this section. 

10 SEC. 6. CREDIT FOR COMPUTER COSTS. 

11 (a) IN GENERAL.—Subpart C of part IV of sub12 chapter A of chapter 1 of the Internal Revenue Code of 

13 1986 is amended by inserting after section 36B the fol14 lowing new section: 

15 ‘‘SEC. 36C. CREDIT FOR COMPUTER COSTS. 

16 ‘‘(a) IN GENERAL.—In the case of an eligible indi17 vidual, there shall be allowed as a credit against the tax 

18 imposed by this subtitle for the taxable year an amount 

19 equal the lesser of— 

20 ‘‘(1) the amount of qualified computer costs 

21 paid or incurred by the taxpayer during such taxable 

22 year, 

23 ‘‘(2) $2,000 ($4,000 in the case of a joint re24 turn), or 


pbinns on DSKJLVW7X2PROD with BILLS
13 

•HR 2201 IH

1 ‘‘(3) an amount equal to $10,000 ($20,000 in 

2 the case of a joint return) minus the sum of any 

3 credits allowed to the taxpayer under this section for 

4 any preceding taxable year. 

5 ‘‘(b) QUALIFIED COMPUTER COSTS.—For purposes 

6 of this section, the term ‘qualified computer costs’ means 

7 amounts paid or incurred for computers, printers, and 

8 other education-related technology. 

9 ‘‘(c) LIMITATION BASED ON ADJUSTED GROSS IN10 COME.—With respect to any taxable year, the $2,000 

11 amount (or, in the case of a joint return, $4,000 amount) 

12 in subsection (a)(2) shall be reduced by an amount equal 

13 to 5 percent of so much of the taxpayer’s adjusted gross 

14 income for such taxable year as exceeds— 

15 ‘‘(1) $72,000 in the case of a joint return, 

16 ‘‘(2) $54,000 in the case of a head of house17 hold, and 

18 ‘‘(3) $36,000 in the case of a taxpayer not de19 scribed in paragraph (1) or (2). 

20 ‘‘(d) ELIGIBLE INDIVIDUAL.—The term ‘eligible indi21 vidual’ means any individual other than— 

22 ‘‘(1) any nonresident alien individual, 

23 ‘‘(2) any individual with respect to whom a de24 duction under section 151 is allowable to another 

25 taxpayer for a taxable year beginning in the calVerDate Sep 11 2014 01:10 May 21, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H2201.IH H2201

pbinns on DSKJLVW7X2PROD with BILLS
14 

•HR 2201 IH

1 endar year in which the individual’s taxable year be2 gins, and 

3 ‘‘(3) an estate or trust. 

4 ‘‘(e) APPLICATION OF SECTION.—This section shall 

5 only apply to qualified computer costs incurred by the tax6 payer after December 31, 2020, and before January 1, 

7 2033.’’. 

8 (b) ADVANCE PAYMENT OF CREDIT.— 

9 (1) IN GENERAL.—Chapter 77 of the Internal 

10 Revenue Code of 1986, as amended by section 

11 9611(b) of the American Rescue Plan Act of 2021 

12 (Public Law 117-2), is amended by inserting after 

13 section 7527A the following new section: 

14 ‘‘SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR COM15 PUTER COSTS. 

16 ‘‘(a) IN GENERAL.—As soon as practicable after the 

17 date of the enactment of this section, the Secretary shall 

18 establish a program for making advance payments of the 

19 credit allowed under section 36C (determined without re20 gard to subsection (e) of such section), on such basis as 

21 the Secretary determines to be administratively feasible, 

22 to taxpayers determined to be eligible for advance payment 

23 of such credit. 

24 ‘‘(b) LIMITATION.— 


pbinns on DSKJLVW7X2PROD with BILLS
15 

•HR 2201 IH

1 ‘‘(1) IN GENERAL.—The Secretary may make 

2 payments under subsection (a) only to the extent 

3 that the total amount of such payments made to any 

4 taxpayer during the taxable year does not exceed the 

5 amount of the credit determined under subsection 

6 (a) of section 36C, as determined based on applica7 tion of subsection (c) of such section using the ad8 justed gross income of the taxpayer for the most re9 cent taxable year for which a return has been filed 

10 during any of the preceding 3 taxable years. 

11 ‘‘(2) NON-FILERS.—In the case of any taxpayer 

12 who has not filed a return during the period de13 scribed in paragraph (1), such paragraph shall be 

14 applied without regard to subsection (c) of section 

15 36C.’’. 

16 (2) RECONCILIATION OF CREDIT AND ADVANCE

17 CREDIT.—Section 36C of such Code, as added by 

18 subsection (a), is amended— 

19 (A) by redesignating subsection (e) as sub20 section (f); and 

21 (B) by inserting after subsection (d) the 

22 following new subsection: 

23 ‘‘(e) RECONCILIATION OF CREDIT AND ADVANCE

24 CREDIT.— 


pbinns on DSKJLVW7X2PROD with BILLS
16 

•HR 2201 IH

1 ‘‘(1) IN GENERAL.—The amount of the credit 

2 allowed under this section for any taxable year shall 

3 be reduced (but not below zero) by the aggregate 

4 amount of any advance payments of such credit 

5 under section 7527B for such taxable year. 

6 ‘‘(2) EXCESS ADVANCE PAYMENTS.— 

7 ‘‘(A) IN GENERAL.—If the aggregate 

8 amount of advance payments under section 

9 7527B for the taxable year exceeds the amount 

10 of the credit allowed under this section for such 

11 taxable year (determined without regard to 

12 paragraph (1)), the tax imposed by this chapter 

13 for such taxable year shall be increased by the 

14 amount of such excess. 

15 ‘‘(B) RETURN REQUIREMENT.—If the tax 

16 imposed by this chapter for the taxable year is 

17 increased under this paragraph, the taxpayer 

18 shall, notwithstanding section 6012, be required 

19 to file a return with respect to the taxes im20 posed under this subtitle.’’. 

21 (c) CONFORMING AMENDMENTS.— 

22 (1) Section 6211(b)(4)(A) of the Internal Rev23 enue Code of 1986 is amended— 

24 (A) by inserting ‘‘36C,’’ after ‘‘36B,’’, and 


pbinns on DSKJLVW7X2PROD with BILLS
17 

•HR 2201 IH

1 (B) by striking ‘‘and 7527A’’ and inserting 

2 ‘‘7527A, and 7527B’’. 

3 (2) Paragraph (2) of section 1324(b) of title 

4 31, United States Code, is amended— 

5 (A) by inserting ‘‘36C,’’ after ‘‘36B,’’, and 

6 (B) by striking ‘‘or 7527A’’ and inserting 

7 ‘‘7527A, or 7527B’’. 

8 (3) The table of sections for subpart C of part 

9 IV of subchapter A of chapter 1 of the Internal Rev10 enue Code of 1986 is amended by inserting after the 

11 item relating to section 36B the following new item: 

‘‘Sec. 36C. Credit for Computer Costs.’’. 

12 (4) The table of sections for chapter 77 of such 

13 Code is amended by inserting after the item relating 

14 to section 7527A the following new item: 

‘‘Sec. 7527B. Advance payment of credit for computer costs.’’. 

15 (d) PUBLIC AWARENESS CAMPAIGN.—The Secretary 

16 of the Treasury (or the Secretary’s delegate) shall conduct 

17 a public awareness campaign, in coordination with the 

18 Commissioner of Social Security, the Secretary of Vet19 erans Affairs, and the heads of other relevant Federal and 

20 State agencies, to provide information to the public (in21 cluding non-English speaking populations) regarding the 

22 availability of the credit allowed under section 36C of the 

23 Internal Revenue Code of 1986 and advance payment of 


pbinns on DSKJLVW7X2PROD with BILLS
18 

•HR 2201 IH

1 such credit pursuant to section 7527B of such Code (as 

2 added by this section). 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to costs incurred in taxable years 

5 beginning after December 31, 2020. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS