Rural Broadband Connectivity Act of 2019

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. 1. Short title This Act may be cited as the Rural Broadband Connectivity Act of 2019 2. Rural Broadband Tax Credit (a) In general Subpart E of part IV of subchapter A of chapter 1 48D. Rural Broadband Credit (a) In general 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. (b) Cap on credit amount (1) In general 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— (A) the value of the number of qualified potential customers served by the qualifying broadband project for which such property is necessary, multiplied by (B) $170. (2) Qualified potential customer For purposes of this section, the term qualified potential customer (A) who resides in a qualified rural census tract, and (B) 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. (c) Qualified broadband property For the purposes of this section— (1) In general The term qualified broadband property (2) Qualifying broadband project The term qualifying broadband project (3) Broadband service The term broadband service (4) Qualified rural census tract The term qualified rural census tract (A) being rural, (B) having less than 50 percent of residents with access to broadband service, and (C) being underserved and not at risk of experiencing duplicative service expansion or overbuilding of existing broadband infrastructure. (d) 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. (e) Termination 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. . (b) Conforming amendment Paragraph (6) of section 46 of such Code is amended to read as follows: (6) the rural broadband credit. . (c) Clerical amendment 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. . (d) Effective date 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.

Summary: Rural Broadband Connectivity Act of 2019 This bill allows a business-related tax credit for up to 30% of the cost of qualified broadband property in a qualified rural census tract. The bill imposes a limit on the amount of such credit based upon the number of potential customers residing in a rural area and served by the broadband project (multiplied by $170). A qualified rural census tract must be underserved and have less than 50% of its residents with access to broadband service.