I 
111TH CONGRESS 
1ST SESSION 
H. R. 760 
To amend the Internal Revenue Code of 1986 to provide an income tax 
credit to holders of bonds financing new advanced broadband infrastruc-
ture, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2009 
Ms. ESHOO (for herself, Mr. THOMPSON of California, and Mr. MARKEY of 
Massachusetts) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on En-
ergy and Commerce, 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 amend the Internal Revenue Code of 1986 to provide 
an income tax credit to holders of bonds financing new 
advanced broadband infrastructure, and for other pur-
poses. 
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 ‘‘Advanced Broadband 
Infrastructure Bond Initiative of 2009’’. 
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SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ADVANCED 
BROADBAND INFRASTRUCTURE BONDS. 
(a) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1 (relating to qualified tax credit 
bonds) is amended by adding at the end the following new 
section: 
‘‘SEC. 54F. CREDIT TO HOLDERS OF QUALIFIED ADVANCED 
BROADBAND INFRASTRUCTURE BONDS. 
‘‘(a) QUALIFIED ADVANCED BROADBAND INFRA-
STRUCTURE BOND.—For purposes of this subpart the 
term ‘qualified advanced broadband infrastructure bond’ 
means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for any or a series 
of designated qualified advanced broadband infra-
structure projects, and 
‘‘(2) the bond is issued by a qualified issuer. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) NATIONAL LIMITATION.—There is a na-
tional advanced broadband infrastructure bond limi-
tation for each calendar year. Such limitation for 
each calendar year, 2009, 2010, and 2011, is— 
‘‘(A) in the case of qualified issuers which 
are 
States 
or 
local 
governments, 
$1,000,000,000, and 
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‘‘(B) in the case of all other issuers, 
$10,000,000,000, 
and, except as provided in paragraph (4), zero there-
after. 
‘‘(2) ALLOCATION
OF
LIMITATION.—The na-
tional advanced broadband infrastructure bond limi-
tation for a calendar year shall be allocated by the 
Secretary among the qualified advanced broadband 
infrastructure projects designated for such year to 
ensure an equitable distribution among the States 
and to maximize the number of jobs and economic 
output. 
‘‘(3) DESIGNATION
SUBJECT
TO
LIMITATION 
AMOUNT.—The maximum aggregate face amount of 
bonds issued during any calendar year which may be 
designated under subsection (a) with respect to any 
qualified advanced broadband infrastructure project 
shall not exceed the limitation amount allocated to 
such project under paragraph (2) for such calendar 
year. 
‘‘(4) CARRYOVER OF UNUSED LIMITATION.— 
‘‘(A) IN
GENERAL.—If for any calendar 
year— 
‘‘(i) the national advanced broadband 
infrastructure limitation amount, exceeds 
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‘‘(ii) the amount of bonds issued dur-
ing such year which are designated under 
subsection (a) with respect to qualified ad-
vanced broadband infrastructure projects, 
the national advanced broadband infrastructure limi-
tation amount for the following calendar year shall 
be increased by the amount of such excess. 
‘‘(B) LIMITATION
OF
CARRYOVER.—Any 
carryforward of a limitation amount may be 
carried only to the first 3 years following the 
unused limitation year. For purposes of the pre-
ceding sentence, a limitation amount shall be 
treated as used on a first-in first-out basis. 
‘‘(c) QUALIFIED ADVANCED BROADBAND INFRA-
STRUCTURE PROJECT.—For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified ad-
vanced broadband infrastructure project’ means a 
project approved by the Secretary to construct ad-
vanced broadband infrastructure that— 
‘‘(A) provides residential or small business 
consumers with access to the internet in the 
normal course of operations at transmission 
speeds that comply with the requirements of 
paragraph (3) for the provision of advanced 
broadband communications services; and 
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‘‘(B) operates advanced broadband service 
networks on an open access basis, as defined by 
the Federal Communications Commission. 
‘‘(2) APPROVAL REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A project may not be 
approved as a qualified advanced broadband in-
frastructure project unless— 
‘‘(i) the issuer with respect to such 
project certifies that the NTIA Adminis-
trator has approved such project in writ-
ing, and 
‘‘(ii) the project— 
‘‘(I) in the case of a qualified 
issuer which is a State or local gov-
ernment, meets the requirements of 
subparagraph (B), and 
‘‘(II) in the case of any other 
qualified issuer, meets the require-
ments of subparagraph (C). 
‘‘(B) REQUIREMENTS
FOR
STATE
OR 
LOCAL GOVERNMENT PROJECTS.—The require-
ments of this subparagraph are met if— 
‘‘(i) the project is nominated by a 
State or local government for approval as 
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a qualified advanced broadband infrastruc-
ture project, 
‘‘(ii) such State or local government 
has provided private sector entities with 
notice of the opportunity during a 30-day 
period to bid to provide the services offered 
by such nominated project, and 
‘‘(iii) such project is approved by the 
Secretary, upon recommendation of the 
Secretary of Commerce, as a qualified ad-
vanced broadband infrastructure project or 
a series of qualified advanced broadband 
infrastructure projects. 
‘‘(C) 
REQUIREMENTS
FOR
OTHER 
PROJECTS.—The requirements of this subpara-
graph are met if— 
‘‘(i) the project— 
‘‘(I) in the case of a qualified 
issuer 
described 
in 
subsection 
(d)(1)(B), is with respect to such pro-
vision of services within the des-
ignated operating area of the jurisdic-
tion of the State or local governing 
authority from which such qualified 
issuer has obtained a certificate of 
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public convenience and necessity (or 
the equivalent), or, in the case of a 
qualified issuer described in sub-
section (d)(1)(C), is with respect to 
such provision of services within the 
area for which such qualified issuer is 
licensed to provide commercial mobile 
service by the Federal Communica-
tions Commission, or 
‘‘(II) is nominated by a State 
Public Utility Commission or local 
governing authority for approval as a 
qualified advanced broadband infra-
structure project, or by the Federal 
Communications Commission under 
paragraph (5), and 
‘‘(ii) such project is approved by the 
Secretary, upon receipt of such a nomina-
tion, as a qualified advanced broadband in-
frastructure project or a series of qualified 
advanced 
broadband 
infrastructure 
projects. 
‘‘(3) TRANSMISSION SPEED REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—A project complies 
with the requirements of this subparagraph if it 
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provides each subscribing residential or small 
business consumer with access to the internet in 
the normal course of operations at transmission 
speeds of at least— 
‘‘(i) 50 megabits per second down-
stream and 20 megabits per second up-
stream, or 
‘‘(ii) 10 megabits per second down-
stream and 2 megabits per second up-
stream for the provision of advanced 
broadband communications services using 
commercial mobile services. 
‘‘(B) 
TRANSMISSION
SPEED
ADJUST-
MENTS.—The Secretary shall adjust the trans-
mission speeds required under clause (i) to re-
flect the most recent increase in the trans-
mission speed requirements prescribed by the 
NTIA Administrator under section 159(c) of 
the National Telecommunications and Informa-
tion Administration Organization Act. Any ad-
justment under the preceding sentence shall 
apply to bonds issued later than 60 days after 
the date such increase is prescribed by the 
NTIA Administrator. 
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‘‘(4) TECHNOLOGY
NEUTRALITY.—The Sec-
retary shall approve projects as qualified advanced 
broadband infrastructure projects on a technology 
neutral basis. 
‘‘(5) ALTERNATE NOMINATING PROCEDURE.—If 
a State Public Utility Commission or local governing 
authority that receives, from an entity holding a cer-
tificate of public convenience and necessity (or the 
equivalent) described in paragraph (2)(C)(i)(I), a 
formal request for nomination under paragraph 
(2)(C)(i)(II) does not act on the nomination within 
30 days of the submission of such request, the Fed-
eral Communications Commission shall act on such 
request for nomination within 30 days the submis-
sion of a notice from such entity of the inaction by 
such State Public Utility Commission or local gov-
erning authority on such formal request. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) QUALIFIED ISSUER.—The term ‘qualified 
issuer’ means— 
‘‘(A) a State or local government, 
‘‘(B) an entity that has obtained from a 
State Public Utility Commission or local gov-
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erning authority a certificate of public conven-
ience and necessity (or the equivalent), 
‘‘(C) an entity that has a project that is 
nominated by a State Public Utility Commis-
sion or local governing authority for approval as 
a qualified advanced broadband infrastructure 
project, or 
‘‘(D) a commercial mobile service provider 
which is licensed to provide mobile service by 
the Federal Communication Commission. 
‘‘(2) NTIA ADMINISTRATOR.—The term ‘NTIA 
Administrator’ means the Administrator of the Na-
tional Telecommunications and Information Admin-
istration within the Department of Commerce, who 
is the Assistant Secretary of Commerce for Commu-
nications and Information. 
‘‘(3) STATE
REGULATORY
UTILITY
COMMIS-
SION.—The term ‘State Regulatory Utility Commis-
sion’ means the government agency in a State that 
regulates the entry into and provision of tele-
communications services. 
‘‘(e) DESIGNATION PREFERENCES.— 
‘‘(1) IN GENERAL.—With respect to designa-
tions under this section, preferences shall be given— 
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‘‘(A) to nominations reflecting expeditious 
deployment of advanced broadband infrastruc-
ture, 
‘‘(B) to approved projects serving areas in 
the following order: unserved areas, underserved 
areas, and served areas, and 
‘‘(C) in the case of a project with respect 
to a qualified issuer which is a State or local 
government, to nominations reflecting partner-
ships and comprehensive planning between 
State and local governments and the private 
sector or existing governmental entities that 
provide telecommunications services, with con-
struction and operation performed by the pri-
vate sector entity or the existing governmental 
entity. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) SERVED
AREA.—The term ‘served 
area’ means an area served by at least 2 
wireline broadband service providers. 
‘‘(B) UNDERSERVED
AREA.—The term 
‘underserved area’ means an area served by 1 
wireline broadband service provider. 
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‘‘(C) 
UNSERVED
AREA.—The 
term 
‘unserved area’ means an area not served by 
any wireline broadband service provider. 
‘‘(f) FAILURE TO MAINTAIN TRANSMISSION SPEED 
REQUIREMENTS.—For purposes of subsection (a)(1), the 
proceeds from the sale of an issue shall not be treated 
as used for a qualified advanced broadband infrastructure 
project to the extent that it is certified to the Secretary 
by the NTIA Administrator under section 159 of the Na-
tional Telecommunications and Information Administra-
tion Organization Act that the project has failed to meet 
the applicable transmission speed requirements. The Sec-
retary shall, in consultation with the NTIA Administrator, 
prescribe regulations specifying remedial actions that may 
be taken (including conditions to taking such remedial ac-
tions) to prevent such a failure from causing a bond to 
fail to be a qualified advanced broadband infrastructure 
bond. 
‘‘(g) REPORTING.—Issuers of qualified advanced 
broadband infrastructure bonds shall submit reports simi-
lar to the reports required under section 149(e) and shall 
maintain a file for public inspection that contains quar-
terly certifications by an officer of the entity operating the 
advanced broadband infrastructure that it is providing in 
the course of normal operations advanced broadband com-
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munication services to each consumer served by the quali-
fied advanced broadband infrastructure project. Such re-
ports and certifications shall be made available on the 
issuer’s website and shall include a description of the use 
of the proceeds of issues by such issuer.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) is amended 
by striking ‘‘or’’ at the end of subparagraph (C), by 
inserting ‘‘or’’ at the end of subparagraph (D), and 
by inserting after subparagraph (D) the following 
new subparagraph: 
‘‘(E) a qualified advanced broadband infra-
structure bond.’’. 
(2) Subparagraph (C) of section 54A(d)(2) is 
amended by striking ‘‘and’’ at the end of clause (iii), 
by striking the period at the end of clause (iv) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) in the case of a qualified ad-
vanced broadband infrastructure bond, a 
purpose specified in section 54F(a)(1).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart I of part IV of subchapter A of chapter 1 is 
amended by adding at the end the following new item: 
‘‘Sec. 54F. Credit to holders of qualified advanced broadband infrastructure 
bonds.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of enactment of this Act. 
(e) NTIA RESPONSIBILITIES.—The National Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 901 et seq.) is amended by adding 
at the end of part C the following new section: 
‘‘SEC. 
159. 
ADVANCED 
BROADBAND 
INFRASTRUCTURE 
BOND PROGRAM. 
‘‘(a) INITIAL CERTIFICATION.—The NTIA shall re-
ceive requests for approval of qualified advanced 
broadband infrastructure projects with respect to qualified 
advanced infrastructure bonds under section 54F of the 
Internal Revenue Code of 1986, and, within 30 days of 
receipt, issue a written decision as to whether such project 
meets the requirements of such section relating to quali-
fied advanced broadband infrastructure projects. 
‘‘(b) MONITORING.—The NTIA shall develop a pro-
gram to monitor the implementation of qualified advanced 
broadband infrastructure projects under section 54F of 
such Code— 
‘‘(1) to ensure that such projects meet the ap-
plicable transmission speed requirements under such 
section; 
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‘‘(2) to provide notification to any issuer with 
respect to a project not in compliance with such 
speed requirements and include in such notice an ex-
planation that if such project fails to satisfy such re-
quirements not later than 60 days after the date of 
such notice— 
‘‘(A) the certification described in para-
graph (3) shall be made, and 
‘‘(B) the bond with respect to such project 
risks failing to be a qualified advanced 
broadband infrastructure bond; and 
‘‘(3) in the case of a project which does not sat-
isfy such requirements before the expiration of such 
60-day period, to certify to the Secretary of the 
Treasury that such a project has not met such re-
quirements. 
‘‘(c) AUTHORITY
TO
INCREASE
TRANSMISSION 
SPEED REQUIREMENTS.—On December 31, 2009, and 
December 31, 2010, the NTIA shall, after providing pub-
lic notice and an opportunity for comment, issue a decision 
determining whether and by what amount to increase the 
transmission 
speed 
requirements 
of 
the 
advanced 
broadband infrastructure bond program under section 
54F(c)(3) of the Internal Revenue Code of 1986. In reach-
ing the determination, the Assistant Secretary shall ensure 
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that the transmission speed requirements reflect the fast-
est speeds currently being offered in a generally available 
service in the normal course of operations to residential 
and small business consumers by wireline broadband serv-
ice providers. 
‘‘(d) ANNUAL REPORT.—The NTIA shall, in con-
sultation with the Secretary of the Treasury, transmit to 
Congress an annual report describing the progress in 
achieving the goals of the advanced broadband infrastruc-
ture bond program, including for the year upon which the 
report is based— 
‘‘(1) the monetary value of the bonds issued; 
‘‘(2) the transmission speeds being deployed by 
bond issuers; 
‘‘(3) a description of the qualified advanced 
broadband infrastructure projects using proceeds 
from bonds issued under section 54F of such Code; 
and 
‘‘(4) the results of any rule-making proceedings 
carried out under the authority provided in sub-
section (b), including any changes to the trans-
mission speed requirements of the program.’’. 
(f) FCC RESPONSIBILITIES.—Not later than 45 days 
after the date of enactment of this Act, the Federal Com-
munications Commission shall complete a rule-making 
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proceeding to define ‘‘operates advanced broadband serv-
ice networks on an open access basis’’, as used in section 
54F(c)(1)(B) of the Internal Revenue Code of 1986 (as 
amended by subsection (a) of this Act). 
Æ 
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