498 
AMDT. NO. 98 
‘‘(A) such a subscriber has been passed by 
the provider’s equipment and can be connected 
to such equipment for a standard connection 
fee, 
‘‘(B) the provider is physically able to de-
liver current generation broadband services or 
next generation broadband services, as applica-
ble, to such a subscriber without making more 
than an insignificant investment with respect to 
such subscriber, 
‘‘(C) the provider has made reasonable ef-
forts to make such subscribers aware of the 
availability of such services, 
‘‘(D) such services have been purchased by 
1 or more such subscribers, and 
‘‘(E) such services are made available to 
such subscribers at average prices comparable 
to those at which the provider makes available 
similar services in any areas in which the pro-
vider makes available such services. 
‘‘(13) QUALIFIED EQUIPMENT.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
equipment’ means property with respect to 
which depreciation (or amortization in lieu of 
depreciation) is allowable and which provides 
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AMDT. NO. 98 
current generation broadband services or next 
generation broadband services— 
‘‘(i) at least a majority of the time 
during periods of maximum demand to 
each subscriber who is utilizing such serv-
ices, and 
‘‘(ii) in a manner substantially the 
same as such services are provided by the 
provider to subscribers through equipment 
with respect to which no credit is allowed 
under subsection (a)(1). 
‘‘(B) ONLY CERTAIN INVESTMENT TAKEN 
INTO
ACCOUNT.—Except as provided in sub-
paragraph (C) or (D), equipment shall be taken 
into account under subparagraph (A) only to 
the extent it— 
‘‘(i) extends from the last point of 
switching to the outside of the unit, build-
ing, dwelling, or office owned or leased by 
a subscriber in the case of a telecommuni-
cations carrier or broadband-over-powerline 
operator, 
‘‘(ii) extends from the customer side 
of the mobile telephone switching office to 
a transmission/receive antenna (including 
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AMDT. NO. 98 
such antenna) owned or leased by a sub-
scriber in the case of a commercial mobile 
service carrier, 
‘‘(iii) extends from the customer side 
of the headend to the outside of the unit, 
building, dwelling, or office owned or 
leased by a subscriber in the case of a 
cable operator or open video system oper-
ator, or 
‘‘(iv) extends from a transmission/re-
ceive antenna (including such antenna) 
which transmits and receives signals to or 
from multiple subscribers, to a trans-
mission/receive antenna (including such 
antenna) on the outside of the unit, build-
ing, dwelling, or office owned or leased by 
a subscriber in the case of a satellite car-
rier or other wireless carrier, unless such 
other wireless carrier is also a tele-
communications carrier. 
‘‘(C) PACKET
SWITCHING
EQUIPMENT.— 
Packet switching equipment, regardless of loca-
tion, shall be taken into account under subpara-
graph (A) only if it is deployed in connection 
with equipment described in subparagraph (B) 
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501 
AMDT. NO. 98 
and is uniquely designed to perform the func-
tion of packet switching for current generation 
broadband 
services 
or 
next 
generation 
broadband services, but only if such packet 
switching is the last in a series of such func-
tions performed in the transmission of a signal 
to a subscriber or the first in a series of such 
functions performed in the transmission of a 
signal from a subscriber. 
‘‘(D) 
MULTIPLEXING
AND 
DEMULTIPLEXING
EQUIPMENT.—Multiplexing 
and demultiplexing equipment shall be taken 
into account under subparagraph (A) only to 
the extent it is deployed in connection with 
equipment described in subparagraph (B) and 
is uniquely designed to perform the function of 
multiplexing and demultiplexing packets or cells 
of data and making associated application 
adaptions, but only if such multiplexing or 
demultiplexing equipment is located between 
packet switching equipment described in sub-
paragraph (C) and the subscriber’s premises. 
‘‘(14) 
QUALIFIED
BROADBAND
EXPENDI-
TURE.— 
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502 
AMDT. NO. 98 
‘‘(A) IN
GENERAL.—The term ‘qualified 
broadband expenditure’ means any amount— 
‘‘(i) chargeable to capital account with 
respect to the purchase and installation of 
qualified equipment (including any up-
grades thereto) for which depreciation is 
allowable under section 168, and 
‘‘(ii) incurred after December 31, 
2008, and before January 1, 2011. 
‘‘(B) CERTAIN SATELLITE EXPENDITURES 
EXCLUDED.—Such term shall not include any 
expenditure with respect to the launching of 
any satellite equipment. 
‘‘(C) LEASED
EQUIPMENT.—Such term 
shall include so much of the purchase price paid 
by the lessor of equipment subject to a lease de-
scribed in subsection (c)(2)(B) as is attrib-
utable to expenditures incurred by the lessee 
which would otherwise be described in subpara-
graph (A). 
‘‘(15) QUALIFIED
SUBSCRIBER.—The term 
‘qualified subscriber’ means— 
‘‘(A) with respect to the provision of cur-
rent generation broadband services— 
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AMDT. NO. 98 
‘‘(i) any nonresidential subscriber 
maintaining a permanent place of business 
in a rural area, an underserved area, or an 
unserved area, or 
‘‘(ii) any residential subscriber resid-
ing in a dwelling located in a rural area, 
an underserved area, or an unserved area 
which is not a saturated market, and 
‘‘(B) with respect to the provision of next 
generation broadband services— 
‘‘(i) any nonresidential subscriber 
maintaining a permanent place of business 
in a rural area, an underserved area, or an 
unserved area , or 
‘‘(ii) any residential subscriber. 
‘‘(16) RESIDENTIAL
SUBSCRIBER.—The term 
‘residential subscriber’ means any individual who 
purchases broadband services which are delivered to 
such individual’s dwelling. 
‘‘(17) RURAL
AREA.—The term ‘rural area’ 
means any census tract which— 
‘‘(A) is not within 10 miles of any incor-
porated or census designated place containing 
more than 25,000 people, and 
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AMDT. NO. 98 
‘‘(B) is not within a county or county 
equivalent which has an overall population den-
sity of more than 500 people per square mile of 
land. 
‘‘(18) RURAL
SUBSCRIBER.—The term ‘rural 
subscriber’ means any residential subscriber residing 
in a dwelling located in a rural area or nonresiden-
tial subscriber maintaining a permanent place of 
business located in a rural area. 
‘‘(19) SATELLITE
CARRIER.—The term ‘sat-
ellite carrier’ means any person using the facilities 
of a satellite or satellite service licensed by the Fed-
eral Communications Commission and operating in 
the Fixed-Satellite Service under part 25 of title 47 
of the Code of Federal Regulations or the Direct 
Broadcast Satellite Service under part 100 of title 
47 of such Code to establish and operate a channel 
of communications for distribution of signals, and 
owning or leasing a capacity or service on a satellite 
in order to provide such point-to-multipoint distribu-
tion. 
‘‘(20) SATURATED MARKET.—The term ‘satu-
rated market’ means any census tract in which, as 
of the date of the enactment of this section— 
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505 
AMDT. NO. 98 
‘‘(A) current generation broadband services 
have been provided by a single provider to 85 
percent or more of the total number of potential 
residential subscribers residing in dwellings lo-
cated within such census tract, and 
‘‘(B) such services can be utilized— 
‘‘(i) at least a majority of the time 
during periods of maximum demand by 
each such subscriber who is utilizing such 
services, and 
‘‘(ii) in a manner substantially the 
same as such services are provided by the 
provider to subscribers through equipment 
with respect to which no credit is allowed 
under subsection (a)(1). 
‘‘(21) SUBSCRIBER.—The term ‘subscriber’ 
means any person who purchases current generation 
broadband services or next generation broadband 
services. 
‘‘(22) TELECOMMUNICATIONS
CARRIER.—The 
term ‘telecommunications carrier’ has the meaning 
given such term by section 3(44) of the Communica-
tions Act of 1934 (47 U.S.C. 153(44)), but— 
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506 
AMDT. NO. 98 
‘‘(A) includes all members of an affiliated 
group of which a telecommunications carrier is 
a member, and 
‘‘(B) does not include any commercial mo-
bile service carrier. 
‘‘(23) TOTAL
POTENTIAL
SUBSCRIBER
POPU-
LATION.—The term ‘total potential subscriber popu-
lation’ means, with respect to any area and based on 
the most recent census data, the total number of po-
tential residential subscribers residing in dwellings 
located in such area and potential nonresidential 
subscribers maintaining permanent places of busi-
ness located in such area. 
‘‘(24) UNDERSERVED AREA.—The term ‘under-
served area’ means any census tract which is located 
in— 
‘‘(A) an empowerment zone or enterprise 
community designated under section 1391, 
‘‘(B) the District of Columbia Enterprise 
Zone established under section 1400, 
‘‘(C) a renewal community designated 
under section 1400E, or 
‘‘(D) a low-income community designated 
under section 45D. 
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AMDT. NO. 98 
‘‘(25) UNDERSERVED SUBSCRIBER.—The term 
‘underserved subscriber’ means any residential sub-
scriber residing in a dwelling located in an under-
served area or nonresidential subscriber maintaining 
a permanent place of business located in an under-
served area. 
‘‘(26) UNSERVED AREA.—The term ‘unserved 
area’ means any census tract in which no current 
generation broadband services are provided, as cer-
tified by the State in which such tract is located not 
later than September 30, 2009. 
‘‘(27) 
UNSERVED
SUBSCRIBER.—The 
term 
‘unserved subscriber’ means any residential sub-
scriber residing in a dwelling located in an unserved 
area or nonresidential subscriber maintaining a per-
manent place of business located in an unserved 
area.’’. 
(b) CREDIT TO BE PART OF INVESTMENT CREDIT.— 
Section 46 (relating to the amount of investment credit), 
as amended by this Act, is amended by striking ‘‘and’’ 
at the end of paragraph (4), by striking the period at the 
end of paragraph (5) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(6) the broadband Internet access credit.’’ 
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508 
AMDT. NO. 98 
(c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE 
TELEPHONE COMPANIES.—Section 501(c)(12)(B) (relat-
ing to list of exempt organizations) is amended by striking 
‘‘or’’ at the end of clause (iii), by striking the period at 
the end of clause (iv) and inserting ‘‘, or’’, and by adding 
at the end the following new clause: 
‘‘(v) from the sale of property subject 
to 
a 
lease 
described 
in 
section 
48D(c)(2)(B), but only to the extent such 
income does not in any year exceed an 
amount equal to the credit for qualified 
broadband expenditures which would be 
determined under section 48D for such 
year if the mutual or cooperative telephone 
company was not exempt from taxation 
and was treated as the owner of the prop-
erty subject to such lease.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C), as amended by this 
Act, is amended by striking ‘‘and’’ at the end of 
clause (iv), by striking the period at the end of 
clause (v) and inserting ‘‘, and’’, and by adding after 
clause (v) the following new clause: 
‘‘(vi) the portion of the basis of any 
qualified equipment attributable to quali-
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AMDT. NO. 98 
fied broadband expenditures under section 
48D.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1, as amended by this 
Act, is amended by inserting after the item relating 
to section 48C the following: 
‘‘Sec. 48D. Broadband internet access credit’’. 
(e) DESIGNATION OF CENSUS TRACTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall, not later than 90 days after the date of 
the enactment of this Act, designate and publish 
those census tracts meeting the criteria described in 
paragraphs (17), (23), (24), and (26) of section 
48D(e) of the Internal Revenue Code of 1986 (as 
added by this section). In making such designations, 
the Secretary of the Treasury shall consult with 
such other departments and agencies as the Sec-
retary determines appropriate. 
(2) SATURATED MARKET.— 
(A) IN GENERAL.—For purposes of desig-
nating and publishing those census tracts meet-
ing the criteria described in subsection (e)(20) 
of such section 48D— 
(i) the Secretary of the Treasury shall 
prescribe not later than 30 days after the 
date of the enactment of this Act the form 
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AMDT. NO. 98 
upon which any provider which takes the 
position that it meets such criteria with re-
spect to any census tract shall submit a 
list of such census tracts (and any other 
information required by the Secretary) not 
later than 60 days after the date of the 
publication of such form, and 
(ii) the Secretary of the Treasury 
shall publish an aggregate list of such cen-
sus tracts submitted and the applicable 
providers not later than 30 days after the 
last date such submissions are allowed 
under clause (i). 
(B) NO SUBSEQUENT LISTS REQUIRED.— 
The Secretary of the Treasury shall not be re-
quired to publish any list of census tracts meet-
ing such criteria subsequent to the list de-
scribed in subparagraph (A)(ii). 
(C) AUTHORITY
TO
DISREGARD
FALSE 
SUBMISSIONS.—In addition to imposing any 
other applicable penalties, the Secretary of the 
Treasury shall have the discretion to disregard 
any form described in subparagraph (A)(i) on 
which a provider knowingly submitted false in-
formation. 
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