cations 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 Sec-
retary 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 tech-
nologies to bring broadband telecommunications
services to underserved rural areas on a cost-effec-
tive basis.
(3) Use broadband telecommunications services
to stimulate economic development, such as pro-
viding 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 Com-
merce 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 avail-
ability 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, agree-
ments, 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 Direc-
tor considers appropriate, the results of any research car-
ried 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 TECH-
NOLOGY BONDS.
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 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 TECH-
NOLOGY BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified technology bond on a credit
allowance date of such bond which occurs during the tax-
able 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 Sec-
retary 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 fol-
lowing calendar month. The credit rate for any
month is the percentage which the Secretary esti-
mates will permit the issuance of qualified tech-
nology 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 de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over
‘‘(2) the sum of the credits allowable under this
part (other than this subpart and subpart C).
‘‘(d) QUALIFIED TECHNOLOGY BOND.—For pur-
poses of this part—
‘‘(1) IN GENERAL.—The term ‘qualified tech-
nology 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 writ-
ten 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 
tele-
communications services in an area within
the jurisdiction of a State or local govern-
ment,
‘‘(ii) which is nominated by such State
or local government for a designation as a
qualified project, and
‘‘(iii) which the Secretary of Com-
merce, after consultation with the Sec-
retary 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, pref-
erences 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 partner-
ships and comprehensive planning between
State and local governments and the pri-
vate sector.
‘‘(e) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—
‘‘(1) NATIONAL LIMITATION.—There is a na-
tional technology bond limitation for each calendar
year. Such limitation is $100,000,000 for 2002,
2003, 2004, 2005, and 2006, and, except as pro-
vided in paragraph (4), zero thereafter.
‘‘(2) ALLOCATION
OF
LIMITATION.—The na-
tional technology bond limitation for a calendar year
shall be allocated by the Secretary among the quali-
fied 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 sub-
section (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 ob-
ligation.
‘‘(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 sev-
eral 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 treat-
ed 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 partner-
ship, 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
INVEST-
MENT COMPANIES.—If any qualified technology bond
is held by a regulated investment company, the cred-
it determined under subsection (a) shall be allowed
to shareholders of such company under procedures
prescribed by the Secretary.
‘‘(3) TREATMENT FOR ESTIMATED TAX PUR-
POSES.—Solely for purposes of sections 6654 and
6655, the credit allowed by this section to a tax-
payer 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 tech-
nology bonds shall submit reports similar to the re-
ports 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 sub-
section (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)).
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 busi-
nesses 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 es-
tablishment and support of regional centers for the com-
mercial 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 in-
stitution 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 pur-
pose of this section within a region determined ap-
propriate 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 re-
gion.
(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 Sec-
retary shall prescribe the form and content of appli-
cations 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 me-
dium-sized businesses located in such region to cre-
ate jobs and increase production in surrounding
areas.
(f) ADDITIONAL ADMINISTRATIVE AUTHORITIES.—
(1) COST-SHARING.—The Secretary may re-
quire the recipient of a grant to defray, out of funds
available from sources other than the Federal Gov-
ernment, 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 pro-
ceeds of the grant that the Secretary determines ap-
propriate for carrying out the purposes of this sec-
tion and to protect the interests of the United
States.
(g) DEFINITIONS
OF SMALL BUSINESS
AND ME-
DIUM-SIZED BUSINESS.—
(1) SECRETARY TO PRESCRIBE.—The Secretary
shall prescribe the definitions of the terms ‘‘small
business’’ and ‘‘medium-sized business’’ for the pur-
pose 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 Com-
merce for carrying out this section $125,000,000 for fiscal
year 2002, and such sums as are necessary for each fiscal
year thereafter.
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