I 

108TH CONGRESS 

1ST SESSION H. R. 768

To amend the Internal Revenue Code of 1986 to provide a broadband Internet 

access tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2003

Mr. ENGLISH (for himself, Mr. MATSUI, Mr. HAYES, Mr. BALLENGER, Mr. 

MCINNIS, Mr. DREIER, Mr. HAYWORTH, Mr. BURR, Mr. WICKER, Mr. 

WELLER, Mr. TERRY, Mr. FOLEY, Mrs. JONES of Ohio, Mr. BECERRA, 

Mr. HONDA, Ms. DELAURO, Mr. FROST, Mr. CROWLEY, Mr. PETERSON

of Pennsylvania, Mrs. CAPPS, Mr. KIND, Mr. ROSS, Mr. OLVER, Mr. 

MCHUGH, Mr. GRIJALVA, Mr. UDALL of New Mexico, Ms. WATSON, Mr. 

GRAVES, Mr. SIMMONS, Mr. MOORE, Mr. SWEENEY, Ms. BERKLEY, Mr. 

FILNER, Mr. JANKLOW, Mr. GORDON, Mr. MCINTYRE, Mr. KING of 

Iowa, Mr. PAUL, Ms. NORTON, Mr. QUINN, Mr. BARTLETT of Maryland, 

Mr. SIMPSON, Mr. SHUSTER, Mr. OTTER, Mr. LUCAS of Oklahoma, Mr. 

HEFLEY, Mr. SESSIONS, Mr. DOOLEY of California, Ms. ESHOO, Mr. 

CUNNINGHAM, Mr. DICKS, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 

BOEHLERT, Mr. GONZALEZ, Mr. REYES, Mr. CRAMER, Mr. GREEN of 

Wisconsin, Mr. DOOLITTLE, Ms. GRANGER, Mr. WELDON of Pennsylvania, Mr. RADANOVICH, Mr. CALVERT, Mr. ISAKSON, Mr. NETHERCUTT, 

Mr. WALSH, Mr. HASTINGS of Washington, Mr. REHBERG, Mr. 

GILLMOR, Mr. BAIRD, Mrs. LOWEY, Mr. THOMPSON of California, Mr. 

MILLER of North Carolina, Mr. SAXTON, Mr. YOUNG of Alaska, Mr. 

LARSON of Connecticut, Mr. TOWNS, Mr. SCHIFF, Mr. CASE, Ms. WOOLSEY, Mr. CARDOZA, Mrs. BONO, Mr. OSBORNE, Mr. WEINER, Mr. 

FLETCHER, Mrs. CAPITO, Mr. OSE, Ms. HART, Mr. TURNER of Texas, 

Mr. PEARCE, Mr. INSLEE, Mrs. JOHNSON of Connecticut, Mr. POMBO, 

Mr. ROGERS of Michigan, Mr. BERMAN, Mr. UPTON, Mr. TOM DAVIS of 

Virginia, Mr. KENNEDY of Minnesota, Mr. LATOURETTE, Mr. GOODLATTE, Mr. CASTLE, Mr. POMEROY, Ms. SLAUGHTER, Mr. LEWIS of 

Georgia, and Mrs. CUBIN) introduced the following bill; which was referred to the Committee on Ways and Means 
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A BILL

To amend the Internal Revenue Code of 1986 to provide 

a broadband Internet access tax credit.

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

3 SECTION 1. BROADBAND INTERNET ACCESS TAX CREDIT. 

4 (a) IN GENERAL.—Subpart E of part IV of chapter 

5 1 of the Internal Revenue Code of 1986 (relating to rules 

6 for computing investment credit) is amended by inserting 

7 after section 48 the following new section: 

8 ‘‘SEC. 48A. BROADBAND INTERNET ACCESS CREDIT. 

9 ‘‘(a) GENERAL RULE.—For purposes of section 46, 

10 the broadband credit for any taxable year is the sum of—

11 ‘‘(1) the current generation broadband credit, 

12 plus 

13 ‘‘(2) the next generation broadband credit. 

14 ‘‘(b) CURRENT GENERATION BROADBAND CREDIT; 

15 NEXT GENERATION BROADBAND CREDIT.—For purposes 

16 of this section—

17 ‘‘(1) CURRENT GENERATION BROADBAND

18 CREDIT.—The current generation broadband credit 

19 for any taxable year is equal to 10 percent of the 

20 qualified expenditures incurred with respect to quali21 fied equipment providing current generation 
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1 broadband services to qualified subscribers and 

2 taken into account with respect to such taxable year. 

3 ‘‘(2) NEXT GENERATION BROADBAND CRED4 IT.—The next generation broadband credit for any 

5 taxable year is equal to 20 percent of the qualified 

6 expenditures incurred with respect to qualified 

7 equipment providing next generation broadband 

8 services to qualified subscribers and taken into ac9 count with respect to such taxable year. 

10 ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC11 COUNT.—For purposes of this section—

12 ‘‘(1) IN GENERAL.—Qualified expenditures with 

13 respect to qualified equipment shall be taken into ac14 count with respect to the first taxable year in 

15 which—

16 ‘‘(A) current generation broadband services 

17 are provided through such equipment to quali18 fied subscribers, or

19 ‘‘(B) next generation broadband services 

20 are provided through such equipment to quali21 fied subscribers. 

22 ‘‘(2) LIMITATION.—

23 ‘‘(A) IN GENERAL.—Qualified expenditures 

24 shall be taken into account under paragraph (1) 

25 only with respect to qualified equipment—
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1 ‘‘(i) the original use of which com2 mences with the taxpayer, and 

3 ‘‘(ii) which is placed in service, 

4 after December 31, 2002. 

5 ‘‘(B) SALE-LEASEBACKS.—For purposes of 

6 subparagraph (A), if property—

7 ‘‘(i) is originally placed in service 

8 after December 31, 2002, by any person, 

9 and 

10 ‘‘(ii) sold and leased back by such per11 son within 3 months after the date such 

12 property was originally placed in service, 

13 such property shall be treated as originally 

14 placed in service not earlier than the date on 

15 which such property is used under the leaseback 

16 referred to in clause (ii). 

17 ‘‘(d) SPECIAL ALLOCATION RULES.—

18 ‘‘(1) CURRENT GENERATION BROADBAND SERV19 ICES.—For purposes of determining the current gen20 eration broadband credit under subsection (a)(1) 

21 with respect to qualified equipment through which 

22 current generation broadband services are provided, 

23 if the qualified equipment is capable of serving both 

24 qualified subscribers and other subscribers, the 
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1 qualified expenditures shall be multiplied by a frac2 tion—

3 ‘‘(A) the numerator of which is the sum of 

4 the number of potential qualified subscribers 

5 within the rural areas and the underserved 

6 areas which the equipment is capable of serving 

7 with current generation broadband services, and 

8 ‘‘(B) the denominator of which is the total 

9 potential subscriber population of the area

10 which the equipment is capable of serving with 

11 current generation broadband services. 

12 ‘‘(2) NEXT GENERATION BROADBAND SERV13 ICES.—For purposes of determining the next genera14 tion broadband credit under subsection (a)(2) with 

15 respect to qualified equipment through which next 

16 generation broadband services are provided, if the 

17 qualified equipment is capable of serving both quali18 fied subscribers and other subscribers, the qualified 

19 expenditures shall be multiplied by a fraction—

20 ‘‘(A) the numerator of which is the sum 

21 of—

22 ‘‘(i) the number of potential qualified 

23 subscribers within the rural areas and un24 derserved areas, plus 
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1 ‘‘(ii) the number of potential qualified 

2 subscribers within the area consisting only 

3 of residential subscribers not described in 

4 clause (i), 

5 which the equipment is capable of serving with 

6 next generation broadband services, and 

7 ‘‘(B) the denominator of which is the total 

8 potential subscriber population of the area 

9 which the equipment is capable of serving with 

10 next generation broadband services. 

11 ‘‘(e) DEFINITIONS.—For purposes of this section—

12 ‘‘(1) ANTENNA.—The term ‘antenna’ means 

13 any device used to transmit or receive signals 

14 through the electromagnetic spectrum, including sat15 ellite equipment. 

16 ‘‘(2) CABLE OPERATOR.—The term ‘cable oper17 ator’ has the meaning given such term by section 

18 602(5) of the Communications Act of 1934 (47 

19 U.S.C. 522(5)). 

20 ‘‘(3) COMMERCIAL MOBILE SERVICE CAR21 RIER.—The term ‘commercial mobile service carrier’ 

22 means any person authorized to provide commercial 

23 mobile radio service as defined in section 20.3 of 

24 title 47, Code of Federal Regulations. 
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1 ‘‘(4) CURRENT GENERATION BROADBAND SERV2 ICE.—The term ‘current generation broadband serv3 ice’ means the transmission of signals at a rate of 

4 at least 1,000,000 bits per second to the subscriber 

5 and at least 128,000 bits per second from the sub6 scriber. 

7 ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.—

8 The term ‘multiplexing’ means the transmission of 2 

9 or more signals over a single channel, and the term 

10 ‘demultiplexing’ means the separation of 2 or more 

11 signals previously combined by compatible multi12 plexing equipment. 

13 ‘‘(6) NEXT GENERATION BROADBAND SERV14 ICE.—The term ‘next generation broadband service’ 

15 means the transmission of signals at a rate of at 

16 least 22,000,000 bits per second to the subscriber 

17 and at least 5,000,000 bits per second from the sub18 scriber. 

19 ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The 

20 term ‘nonresidential subscriber’ means any person 

21 who purchases broadband services which are deliv22 ered to the permanent place of business of such per23 son. 

24 ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The 

25 term ‘open video system operator’ means any person 
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1 authorized to provide service under section 653 of 

2 the Communications Act of 1934 (47 U.S.C. 573). 

3 ‘‘(9) OTHER WIRELESS CARRIER.—The term 

4 ‘other wireless carrier’ means any person (other than 

5 a telecommunications carrier, commercial mobile 

6 service carrier, cable operator, open video system op7 erator, or satellite carrier) providing current genera8 tion broadband services or next generation 

9 broadband service to subscribers through the wire10 less transmission of energy through radio or light 

11 waves. 

12 ‘‘(10) PACKET SWITCHING.—The term ‘packet 

13 switching’ means controlling or routing the path of 

14 a digitized transmission signal which is assembled 

15 into packets or cells. 

16 ‘‘(11) PROVIDER.—The term ‘provider’ means, 

17 with respect to any qualified equipment any—

18 ‘‘(A) cable operator, 

19 ‘‘(B) commercial mobile service carrier, 

20 ‘‘(C) open video system operator, 

21 ‘‘(D) satellite carrier, 

22 ‘‘(E) telecommunications carrier, or 

23 ‘‘(F) other wireless carrier, 
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1 providing current generation broadband services or 

2 next generation broadband services to subscribers 

3 through such qualified equipment. 

4 ‘‘(12) PROVISION OF SERVICES.—A provider 

5 shall be treated as providing services to 1 or more 

6 subscribers if—

7 ‘‘(A) such a subscriber has been passed by 

8 the provider’s equipment and can be connected 

9 to such equipment for a standard connection 

10 fee, 

11 ‘‘(B) the provider is physically able to de12 liver current generation broadband services or 

13 next generation broadband services, as applica14 ble, to such a subscriber without making more 

15 than an insignificant investment with respect to 

16 such subscriber, 

17 ‘‘(C) the provider has made reasonable ef18 forts to make such subscribers aware of the 

19 availability of such services, 

20 ‘‘(D) such services have been purchased by 

21 1 or more such subscribers, and 

22 ‘‘(E) such services are made available to 

23 such subscribers at average prices comparable 

24 to those at which the provider makes available 
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1 similar services in any areas in which the pro2 vider makes available such services. 

3 ‘‘(13) QUALIFIED EQUIPMENT.—

4 ‘‘(A) IN GENERAL.—The term ‘qualified 

5 equipment’ means equipment which provides 

6 current generation broadband services or next 

7 generation broadband services—

8 ‘‘(i) at least a majority of the time 

9 during periods of maximum demand to 

10 each subscriber who is utilizing such serv11 ices, and

12 ‘‘(ii) in a manner substantially the 

13 same as such services are provided by the 

14 provider to subscribers through equipment 

15 with respect to which no credit is allowed 

16 under subsection (a)(1).

17 ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN

18 INTO ACCOUNT.—Except as provided in sub19 paragraph (C) or (D), equipment shall be taken 

20 into account under subparagraph (A) only to 

21 the extent it—

22 ‘‘(i) extends from the last point of 

23 switching to the outside of the unit, build24 ing, dwelling, or office owned or leased by 
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1 a subscriber in the case of a telecommuni2 cations carrier, 

3 ‘‘(ii) extends from the customer side 

4 of the mobile telephone switching office to 

5 a transmission/receive antenna (including 

6 such antenna) owned or leased by a sub7 scriber in the case of a commercial mobile 

8 service carrier, 

9 ‘‘(iii) extends from the customer side 

10 of the headend to the outside of the unit, 

11 building, dwelling, or office owned or 

12 leased by a subscriber in the case of a 

13 cable operator or open video system oper14 ator, or 

15 ‘‘(iv) extends from a transmission/re16 ceive antenna (including such antenna) 

17 which transmits and receives signals to or 

18 from multiple subscribers, to a trans19 mission/receive antenna (including such 

20 antenna) on the outside of the unit, build21 ing, dwelling, or office owned or leased by 

22 a subscriber in the case of a satellite car23 rier or other wireless carrier, unless such 

24 other wireless carrier is also a tele25 communications carrier. 
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1 ‘‘(C) PACKET SWITCHING EQUIPMENT.—

2 Packet switching equipment, regardless of loca3 tion, shall be taken into account under subpara4 graph (A) only if it is deployed in connection 

5 with equipment described in subparagraph (B) 

6 and is uniquely designed to perform the func7 tion of packet switching for current generation 

8 broadband services or next generation 

9 broadband services, but only if such packet 

10 switching is the last in a series of such func11 tions performed in the transmission of a signal 

12 to a subscriber or the first in a series of such 

13 functions performed in the transmission of a 

14 signal from a subscriber. 

15 ‘‘(D) MULTIPLEXING AND

16 DEMULTIPLEXING EQUIPMENT.—Multiplexing 

17 and demultiplexing equipment shall be taken 

18 into account under subparagraph (A) only to 

19 the extent it is deployed in connection with 

20 equipment described in subparagraph (B) and 

21 is uniquely designed to perform the function of 

22 multiplexing and demultiplexing packets or cells 

23 of data and making associated application 

24 adaptions, but only if such multiplexing or 

25 demultiplexing equipment is located between 
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1 packet switching equipment described in sub2 paragraph (C) and the subscriber’s premises. 

3 ‘‘(14) QUALIFIED EXPENDITURE.—

4 ‘‘(A) IN GENERAL.—The term ‘qualified 

5 expenditure’ means any amount—

6 ‘‘(i) chargeable to capital account with 

7 respect to the purchase and installation of 

8 qualified equipment (including any up9 grades thereto) for which depreciation is 

10 allowable under section 168, and 

11 ‘‘(ii) incurred after December 31, 

12 2002, and before January 1, 2008. 

13 ‘‘(B) CERTAIN SATELLITE EXPENDITURES

14 EXCLUDED.—Such term shall not include any 

15 expenditure with respect to the launching of 

16 any satellite equipment. 

17 ‘‘(C) LEASED EQUIPMENT.—Such term 

18 shall include so much of the purchase price paid 

19 by the lessor of equipment subject to a lease de20 scribed in subsection (c)(2)(B) as is attrib21 utable to expenditures incurred by the lessee 

22 which would otherwise be described in subpara23 graph (A). 

24 ‘‘(15) QUALIFIED SUBSCRIBER.—The term 

25 ‘qualified subscriber’ means—
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1 ‘‘(A) with respect to the provision of cur2 rent generation broadband services—

3 ‘‘(i) any nonresidential subscriber 

4 maintaining a permanent place of business 

5 in a rural area or underserved area, or 

6 ‘‘(ii) any residential subscriber resid7 ing in a dwelling located in a rural area or 

8 underserved area which is not a saturated 

9 market, and 

10 ‘‘(B) with respect to the provision of next 

11 generation broadband services—

12 ‘‘(i) any nonresidential subscriber 

13 maintaining a permanent place of business 

14 in a rural area or underserved area, or 

15 ‘‘(ii) any residential subscriber. 

16 ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term 

17 ‘residential subscriber’ means any individual who 

18 purchases broadband services which are delivered to 

19 such individual’s dwelling. 

20 ‘‘(17) RURAL AREA.—The term ‘rural area’ 

21 means any census tract which—

22 ‘‘(A) is not within 10 miles of any incor23 porated or census designated place containing 

24 more than 25,000 people, and 
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1 ‘‘(B) is not within a county or county 

2 equivalent which has an overall population den3 sity of more than 500 people per square mile of 

4 land. 

5 ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural 

6 subscriber’ means any residential subscriber residing 

7 in a dwelling located in a rural area or nonresiden8 tial subscriber maintaining a permanent place of 

9 business located in a rural area. 

10 ‘‘(19) SATELLITE CARRIER.—The term ‘sat11 ellite carrier’ means any person using the facilities 

12 of a satellite or satellite service licensed by the Fed13 eral Communications Commission and operating in 

14 the Fixed-Satellite Service under part 25 of title 47 

15 of the Code of Federal Regulations or the Direct 

16 Broadcast Satellite Service under part 100 of title 

17 47 of such Code to establish and operate a channel 

18 of communications for distribution of signals, and 

19 owning or leasing a capacity or service on a satellite 

20 in order to provide such distribution. 

21 ‘‘(20) SATURATED MARKET.—The term ‘satu22 rated market’ means any census tract in which, as 

23 of the date of the enactment of this section—

24 ‘‘(A) current generation broadband services 

25 have been provided by a single provider to 85 
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1 percent or more of the total number of potential 

2 residential subscribers residing in dwellings lo3 cated within such census tract, and 

4 ‘‘(B) such services can be utilized—

5 ‘‘(i) at least a majority of the time 

6 during periods of maximum demand by 

7 each such subscriber who is utilizing such 

8 services, and 

9 ‘‘(ii) in a manner substantially the 

10 same as such services are provided by the 

11 provider to subscribers through equipment 

12 with respect to which no credit is allowed 

13 under subsection (a)(1). 

14 ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ 

15 means any person who purchases current generation 

16 broadband services or next generation broadband 

17 services. 

18 ‘‘(22) TELECOMMUNICATIONS CARRIER.—The 

19 term ‘telecommunications carrier’ has the meaning 

20 given such term by section 3(44) of the Communica21 tions Act of 1934 (47 U.S.C. 153(44)), but—

22 ‘‘(A) includes all members of an affiliated 

23 group of which a telecommunications carrier is 

24 a member, and 
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1 ‘‘(B) does not include any commercial mo2 bile service carrier. 

3 ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU4 LATION.—The term ‘total potential subscriber popu5 lation’ means, with respect to any area and based on 

6 the most recent census data, the total number of po7 tential residential subscribers residing in dwellings 

8 located in such area and potential nonresidential 

9 subscribers maintaining permanent places of busi10 ness located in such area. 

11 ‘‘(24) UNDERSERVED AREA.—The term ‘under12 served area’ means any census tract which is located 

13 in—

14 ‘‘(A) an empowerment zone or enterprise 

15 community designated under section 1391, 

16 ‘‘(B) the District of Columbia Enterprise 

17 Zone established under section 1400, 

18 ‘‘(C) a renewal community designated 

19 under section 1400E, or 

20 ‘‘(D) a low-income community designated 

21 under section 45D. 

22 ‘‘(25) UNDERSERVED SUBSCRIBER.—The term 

23 ‘underserved subscriber’ means any residential sub24 scriber residing in a dwelling located in an under25 served area or nonresidential subscriber maintaining 
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1 a permanent place of business located in an under2 served area.’’. 

3 (b) CREDIT TO BE PART OF INVESTMENT CREDIT.—

4 Section 46 of the Internal Revenue Code of 1986 (relating 

5 to the amount of investment credit) is amended by striking 

6 ‘‘and’’ at the end of paragraph (2), by striking the period 

7 at the end of paragraph (3) and inserting ‘‘, and’’, and 

8 by adding at the end the following:

9 ‘‘(4) the broadband Internet access credit.’’

10 (c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE

11 TELEPHONE COMPANIES.—Section 501(c)(12)(B) of the 

12 Internal Revenue Code of 1986 (relating to list of exempt 

13 organizations) is amended by striking ‘‘or’’ at the end of 

14 clause (iii), by striking the period at the end of clause (iv) 

15 and inserting ‘‘, or’’, and by adding at the end the fol16 lowing new clause: 

17 ‘‘(v) from the sale of property subject 

18 to a lease described in section 

19 48A(c)(2)(B), but only to the extent such 

20 income does not in any year exceed an 

21 amount equal to the credit for qualified ex22 penditures which would be determined 

23 under section 48A for such year if the mu24 tual or cooperative telephone company was 

25 not exempt from taxation and was treated 
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1 as the owner of the property subject to 

2 such lease.’’. 

3 (d) CONFORMING AMENDMENT.—The table of sec4 tions for subpart E of part IV of subchapter A of chapter 

5 1 of the Internal Revenue Code of 1986 is amended by 

6 inserting after the item relating to section 48 the fol7 lowing:

‘‘Sec. 48A. Broadband internet access credit.’’.

8 (e) DESIGNATION OF CENSUS TRACTS.—

9 (1) IN GENERAL.—The Secretary of the Treas10 ury shall, not later than 90 days after the date of 

11 the enactment of this Act, designate and publish 

12 those census tracts meeting the criteria described in 

13 paragraphs (17) and (24) of section 48A(e) of the 

14 Internal Revenue Code of 1986 (as added by this 

15 section). In making such designations, the Secretary 

16 of the Treasury shall consult with such other depart17 ments and agencies as the Secretary determines ap18 propriate. 

19 (2) SATURATED MARKET.—

20 (A) IN GENERAL.—For purposes of desig21 nating and publishing those census tracts meet22 ing the criteria described in subsection (e)(20) 

23 of such section 48A—

24 (i) the Secretary of the Treasury shall 

25 prescribe not later than 30 days after the 
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1 date of the enactment of this Act the form 

2 upon which any provider which takes the 

3 position that it meets such criteria with re4 spect to any census tract shall submit a 

5 list of such census tracts (and any other 

6 information required by the Secretary) not 

7 later than 60 days after the date of the 

8 publication of such form, and 

9 (ii) the Secretary of the Treasury 

10 shall publish an aggregate list of such cen11 sus tracts submitted and the applicable 

12 providers not later than 30 days after the 

13 last date such submissions are allowed 

14 under clause (i). 

15 (B) NO SUBSEQUENT LISTS REQUIRED.—

16 The Secretary of the Treasury shall not be re17 quired to publish any list of census tracts meet18 ing such criteria subsequent to the list de19 scribed in subparagraph (A)(ii). 

20 (C) AUTHORITY TO DISREGARD FALSE

21 SUBMISSIONS.—In addition to imposing any 

22 other applicable penalties, the Secretary of the 

23 Treasury shall have the discretion to disregard 

24 any form described in subparagraph (A)(i) on 
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1 which a provider knowingly submitted false in2 formation. 

3 (f) OTHER REGULATORY MATTERS.—

4 (1) PROHIBITION.—No Federal or State agency 

5 or instrumentality shall adopt regulations or rate6 making procedures that would have the effect of 

7 confiscating any credit or portion thereof allowed 

8 under section 48A of the Internal Revenue Code of 

9 1986 (as added by this section) or otherwise sub10 verting the purpose of this section. 

11 (2) TREASURY REGULATORY AUTHORITY.—It is 

12 the intent of Congress in providing the broadband 

13 Internet access credit under section 48A of the In14 ternal Revenue Code of 1986 (as added by this sec15 tion) to provide incentives for the purchase, installa16 tion, and connection of equipment and facilities of17 fering expanded broadband access to the Internet for 

18 users in certain low income and rural areas of the 

19 United States, as well as to residential users nation20 wide, in a manner that maintains competitive neu21 trality among the various classes of providers of 

22 broadband services. Accordingly, the Secretary of 

23 the Treasury shall prescribe such regulations as may 

24 be necessary or appropriate to carry out the pur25 poses of section 48A of such Code, including—
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1 (A) regulations to determine how and when 

2 a taxpayer that incurs qualified expenditures 

3 satisfies the requirements of section 48A of 

4 such Code to provide broadband services, and 

5 (B) regulations describing the information, 

6 records, and data taxpayers are required to pro7 vide the Secretary to substantiate compliance 

8 with the requirements of section 48A of such 

9 Code. 

10 (g) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to expenditures incurred after De12 cember 31, 2002.

Æ