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respect to any property which is of a character
subject to the allowance for depreciation shall be
treated as a deduction allowed for depreciation
under section 167.
‘‘(3) COORDINATION
WITH
SECTION
38.—No
credit shall be allowed under section 38 with respect
to any amount for which a deduction is allowed
under subsection (a)(1).’’.
(b) SPECIAL RULE FOR MUTUAL OR COOPERATIVE
TELEPHONE
COMPANIES.—Section 512(b) (relating to
modifications) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(20) SPECIAL RULE FOR MUTUAL OR COOPERA-
TIVE TELEPHONE COMPANIES.—A mutual or coopera-
tive telephone company which for the taxable year
satisfies the requirements of section 501(c)(12)(A)
may elect to reduce its unrelated business taxable in-
come for such year, if any, by an amount that does
not exceed the qualified broadband expenditures which
would be taken into account under section 191 for
such year by such company if such company was not
exempt from taxation. Any amount which is allowed
as a deduction under this paragraph shall not be al-
lowed as a deduction under section 191 and the basis
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of any property to which this paragraph applies shall
be reduced under section 1016(a)(40).’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 263(a)(1) (relating to capital ex-
penditures) is amended by striking ‘‘or’’ at the end of
subparagraph (J), by striking the period at the end
of subparagraph (K) and inserting ‘‘, or’’, and by
adding at the end the following new subparagraph:
‘‘(L) expenditures for which a deduction is
allowed under section 191.’’.
(2) Section 1016(a), as amended by this Act, is
amended by striking ‘‘and’’ at the end of paragraph
(38), by striking the period at the end of paragraph
(39) and inserting ‘‘, and’’, and by adding at the end
the following new paragraph:
‘‘(40) 
to 
the 
extent 
provided 
in 
section
191(f)(2).’’.
(3) The table of sections for part VI of sub-
chapter A of chapter 1 is amended by inserting after
the item relating to section 190 the following new
item:
‘‘Sec. 191. Broadband expenditures.’’.
(d) DESIGNATION OF CENSUS TRACTS.—
(1) IN GENERAL.—The Secretary of the Treasury
shall, not later than 90 days after the date of the en-
actment of this Act, designate and publish those cen-
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sus tracts meeting the criteria described in para-
graphs (16), (22), and (23) of section 191(e) of the In-
ternal Revenue Code of 1986 (as added by this sec-
tion). In making such designations, the Secretary of
the Treasury shall consult with such other depart-
ments and agencies as the Secretary determines ap-
propriate.
(2) SATURATED MARKET.—
(A) IN GENERAL.—For purposes of desig-
nating and publishing those census tracts meet-
ing the criteria described in subsection (e)(19) of
such section 191—
(i) the Secretary of the Treasury shall
prescribe not later than 30 days after the
date of the enactment of this Act the form
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 infor-
mation required by the Secretary) not later
than 60 days after the date of the publica-
tion of such form, and
(ii) the Secretary of the Treasury shall
publish an aggregate list of such census
tracts and the applicable providers not later
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than 30 days after the last date such sub-
missions 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 described
in subparagraph (A)(ii).
(e) OTHER REGULATORY MATTERS.—
(1) PROHIBITION.—No Federal or State agency
or instrumentality shall adopt regulations or rate-
making procedures that would have the effect of elimi-
nating or reducing any deduction or portion thereof
allowed under section 191 of the Internal Revenue
Code of 1986 (as added by this section) or otherwise
subverting the purpose of this section.
(2) TREASURY REGULATORY AUTHORITY.—It is
the intent of Congress in providing the election to de-
duct qualified broadband expenditures under section
191 of the Internal Revenue Code of 1986 (as added
by this section) to provide incentives for the purchase,
installation, and connection of equipment and facili-
ties offering expanded broadband access to the Inter-
net for users in certain low income and rural areas
of the United States, as well as to residential users
nationwide, in a manner that maintains competitive
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neutrality among the various classes of providers of
broadband services. Accordingly, the Secretary of the
Treasury shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of
section 191 of such Code, including—
(A) regulations to determine how and when
a taxpayer that incurs qualified broadband ex-
penditures satisfies the requirements of section
191 of such Code to provide broadband services,
and
(B) regulations describing the information,
records, and data taxpayers are required to pro-
vide the Secretary to substantiate compliance
with the requirements of section 191 of such
Code.
SEC. 12409. CREDIT FOR ENERGY EFFICIENT MOTORS.
(a) IN GENERAL.—Subpart D of part IV of subchapter
A of chapter 1 (relating to business related credits), as
amended by this Act, is amended by inserting at the end
the following new section:
‘‘SEC. 45Q. CREDIT FOR ENERGY EFFICIENT MOTORS.
‘‘(a) IN GENERAL.—For purposes of section 38, the en-
ergy efficient motors credit determined under this section
for any taxable year is an amount equal to the lesser of—
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‘‘(1) $15 per horsepower generated by qualified
energy efficient motors the original use of which be-
gins with the taxpayer during such taxable year, or
‘‘(2) $1,250,000.
‘‘(b) QUALIFIED ENERGY EFFICIENT MOTOR.—The
term ‘qualified energy efficient motor’ means a general- or
definite-purpose electric motor of 500 horsepower or less
which meets or exceeds the efficiency levels specified in Ta-
bles 12–12 or 12–13 of the National Electrical Manufactur-
ers Association MG–1 (2006).
‘‘(c) SPECIAL RULES.—
‘‘(1) BASIS REDUCTION.—The basis of any prop-
erty for which a credit is allowable under subsection
(a) shall be reduced by the amount of such credit.
‘‘(2) RECAPTURE.—The Secretary shall, by regu-
lations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to
any property which ceases to be property eligible for
such credit.
‘‘(3) PROPERTY USED OUTSIDE UNITED STATES,
ETC., CERTAIN DEPRECIABLE PROPERTY NOT QUALI-
FIED.—No credit shall be allowed under subsection
(a) with respect to any property referred to in section
50(b) or with respect to the portion of the cost of any
property taken into account under section 179.