I 
111TH CONGRESS 
1ST SESSION 
H. R. 691 
To amend the Internal Revenue Code of 1986 to provide a credit against 
income tax for businesses furnishing broadband services to underserved 
and rural areas. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 26, 2009 
Mr. MEEK of Florida introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit against income tax for businesses furnishing 
broadband services to underserved and rural areas. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Broadband Access 
Equality Act of 2009’’. 
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SEC. 2. CREDIT FOR PROPERTY USED TO FURNISH 
BROADBAND SERVICES IN UNDERSERVED 
AND RURAL AREAS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
inserting after section 45Q the following new section: 
‘‘SEC. 45R. PROPERTY USED TO FURNISH BROADBAND 
SERVICES IN UNDERSERVED AND RURAL 
AREAS. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
broadband services credit determined under this section 
is an amount equal to the applicable percentage of the cost 
of each qualified broadband property placed in service dur-
ing the taxable year. 
‘‘(b) APPLICABLE PERCENTAGE.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the applicable percentage is— 
‘‘(A) 50 percent for qualified broadband 
property for underserved and rural areas in 
which, on the date of the enactment of this sec-
tion, not more than the greater of— 
‘‘(i) 5 percent of the households, or 
‘‘(ii) 20 households, 
have broadband access, and 
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‘‘(B) 30 percent for qualified broadband 
property for underserved and rural areas which, 
on such date, are not described in paragraph 
(1). 
‘‘(2) INCREASED
PERCENTAGE
WHERE
HIGH 
SPEED SERVICE PROVIDED.—The applicable percent-
age determined under paragraph (1) shall be in-
creased by 10 percentage points for qualified 
broadband property providing transmission service 
at a speed which is not less than— 
‘‘(A) except in the case of commercial mo-
bile radio services, 50 megabits per second 
downstream and 20 megabits per second up-
stream, and 
‘‘(B) in the case of commercial mobile 
radio services, 10 megabits per second down-
stream and 2 megabits per second upstream. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED BROADBAND PROPERTY.—The 
term ‘qualified broadband property’ means section 
1245 property (as defined in section 1245(a)(3))— 
‘‘(A) which is used to provide broadband 
services in underserved or rural areas to pur-
chasers of such services, 
‘‘(B) which is— 
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‘‘(i) tangible property (to which sec-
tion 168 applies), or 
‘‘(ii) computer software (as defined in 
section 197(e)(3)(B)) which is described in 
section 197(e)(3)(A) and to which section 
167 applies, and 
‘‘(C) the original use of which commences 
with the taxpayer. 
Such term shall not include any property described 
in section 50(b). 
‘‘(2) 
BROADBAND.—The 
term 
‘broadband’ 
means an Internet Protocol-based transmission serv-
ice (at a speed which is not less than 5 megabits per 
second downstream and 1 megabit per second up-
stream) that enables users to send and receive voice, 
video, data, graphics, or a combination, without re-
gard to any transmission media or technology. 
‘‘(3) UNDERSERVED AREA.—The term ‘under-
served area’ means— 
‘‘(A) any census tract that is located in— 
‘‘(i) an empowerment zone or enter-
prise community designated under section 
1391, or 
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‘‘(ii) the District of Columbia Enter-
prise Zone established under section 1400, 
or 
‘‘(B) any census tract— 
‘‘(i) the poverty level of which is at 
least 30 percent (based on the most recent 
census data), and 
‘‘(ii) the median family income of 
which does not exceed— 
‘‘(I) in the case of a census tract 
located in a metropolitan statistical 
area, 70 percent of the greater of the 
metropolitan area median family in-
come or the statewide median family 
income, and 
‘‘(II) in the case of a census tract 
located in a nonmetropolitan statis-
tical area, 70 percent of the non-
metropolitan statewide median family 
income. 
‘‘(4) RURAL
AREA.—The term ‘rural area’ 
means any census tract outside a metropolitan sta-
tistical area (as defined by the Office of Manage-
ment and Budget). 
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‘‘(5) REGULATED ENTITIES.—The credit deter-
mined under subsection (a) may not be used to re-
duce a taxpayer’s cost of service, but may be used 
to reduce rate base, provided that such reduction is 
restored not less rapidly than ratably. For purposes 
of determining ratable restorations to rate base, the 
period of time used in computing depreciation ex-
pense for purposes of reflecting operating results in 
the taxpayer’s regulated books of account shall be 
used. 
‘‘(d) RECAPTURE IN CASE OF DISPOSITIONS, ETC.— 
Under regulations prescribed by the Secretary— 
‘‘(1) EARLY DISPOSITION.—If, before the close 
of the period to which section 50(a)(1) applies, 
qualified broadband property is disposed of or ceases 
to be used to provide broadband services to any un-
derserved area, then the tax under this chapter for 
the taxable year in which such disposition or ces-
sation occurs shall be increased by the recapture 
percentage (determined under the table contained in 
section 50(a)(1)(B)) of the aggregate credits allowed 
under subsection (a) for all prior taxable years. 
‘‘(2) SUBSECTION NOT TO APPLY IN CERTAIN 
CASES.—Rules similar to the rules of section 
50(a)(4) shall apply for purposes of paragraph (1). 
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‘‘(e) OTHER RULES TO APPLY.—Rules similar to the 
rules of paragraphs (3), (4), and (5) of section 179(d) 
shall apply for purposes of this section. 
‘‘(f) BASIS REDUCTION.—Rules similar to the rules 
of sections 50(c) (other than paragraph (3)) and 
1016(a)(19) shall apply for purposes of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (34), 
by striking the period at the end of paragraph (35) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(36) the broadband services credit determined 
under section 45R(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
subpart D of part IV of subchapter A of chapter 1 of such 
Code is amended by adding at the end the following new 
item: 
‘‘Sec. 45R. Property used to furnish broadband services in underserved and 
rural areas.’’ 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of enactment of this Act in taxable years ending 
after such date. 
Æ 
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