I 
110TH CONGRESS 
1ST SESSION H. R. 1818 
To amend the Internal Revenue Code of 1986 to provide for the expensing 
of broadband Internet access expenditures, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Ms. MATSUI (for herself, Mr. ENGLISH of Pennsylvania, Mr. THOMPSON of 
California, Mr. KUHL of New York, Mr. BOUCHER, Mr. MCINTYRE, Mr. 
CROWLEY, Mr. GILLMOR, Mr. KIND, Mr. SCHIFF, and Mrs. CUBIN) in-
troduced 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 
for the expensing of broadband Internet access expendi-
tures, and for other purposes. 
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 Deploy-
ment Acceleration Act of 2007’’. 
VerDate Aug 31 2005 
05:52 Apr 05, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1818.IH
H1818
jcorcoran on PROD1PC62 with BILLS
SEC. 2. EXPENSING OF BROADBAND INTERNET ACCESS EX-
PENDITURES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
itemized deductions for individuals and corporations) is 
amended by inserting after section 190 the following new 
section: 
‘‘SEC. 191. BROADBAND EXPENDITURES. 
‘‘(a) TREATMENT OF EXPENDITURES.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
treat any qualified broadband expenditure which is 
paid or incurred by the taxpayer as an expense 
which is not chargeable to capital account. Any ex-
penditure which is so treated shall be allowed as a 
deduction. 
‘‘(2) ELECTION.—An election under paragraph 
(1) shall be made at such time and in such manner 
as the Secretary may prescribe by regulation. 
‘‘(b) QUALIFIED BROADBAND EXPENDITURES.—For 
purposes of this section— 
‘‘(1) 
IN
GENERAL.—The 
term 
‘qualified 
broadband expenditure’ means, with respect to any 
taxable year, any direct or indirect costs incurred 
after the date of the enactment of this section and 
before the date which is 4 years after such date and 
properly taken into account with respect to— 
VerDate Aug 31 2005 
05:52 Apr 05, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1818.IH
H1818
jcorcoran on PROD1PC62 with BILLS
‘‘(A) the purchase or installation of quali-
fied equipment (including any upgrades there-
to), and 
‘‘(B) the connection of such qualified 
equipment to any qualified subscriber. 
‘‘(2) CERTAIN SATELLITE EXPENDITURES EX-
CLUDED.—Such term shall not include any costs in-
curred with respect to the launching of any satellite 
equipment. 
‘‘(3) LEASED EQUIPMENT.—Such term shall in-
clude so much of the purchase price paid by the les-
sor of qualified equipment subject to a lease de-
scribed in subsection (c)(2)(B) as is attributable to 
expenditures incurred by the lessee which would oth-
erwise be described in paragraph (1). 
‘‘(4) LIMITATION WITH REGARD TO CURRENT 
GENERATION BROADBAND SERVICES.—Only 50 per-
cent of the amounts taken into account under para-
graph (1) with respect to qualified equipment 
through which current generation broadband serv-
ices are provided shall be treated as qualified 
broadband expenditures. 
‘‘(c) WHEN
EXPENDITURES
TAKEN
INTO
AC-
COUNT.—For purposes of this section— 
VerDate Aug 31 2005 
05:52 Apr 05, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1818.IH
H1818
jcorcoran on PROD1PC62 with BILLS
‘‘(1) IN
GENERAL.—Qualified broadband ex-
penditures with respect to qualified equipment shall 
be taken into account with respect to the first tax-
able year in which— 
‘‘(A) current generation broadband services 
are provided through such equipment to quali-
fied subscribers, or 
‘‘(B) next generation broadband services 
are provided through such equipment to quali-
fied subscribers. 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—Qualified expenditures 
shall be taken into account under paragraph (1) 
only with respect to qualified equipment— 
‘‘(i) the original use of which com-
mences with the taxpayer, and 
‘‘(ii) which is placed in service, after 
the date of the enactment of this section. 
‘‘(B) SALE-LEASEBACKS.—For purposes of 
subparagraph (A), if property— 
‘‘(i) is originally placed in service 
after the date of the enactment of this sec-
tion by any person, and 
VerDate Aug 31 2005 
05:52 Apr 05, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1818.IH
H1818
jcorcoran on PROD1PC62 with BILLS
‘‘(ii) sold and leased back by such per-
son within 3 months after the date such 
property was originally placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date on 
which such property is used under the leaseback 
referred to in clause (ii). 
‘‘(d) SPECIAL ALLOCATION RULES.— 
‘‘(1) CURRENT GENERATION BROADBAND SERV-
ICES.—For purposes of determining the amount of 
qualified broadband expenditures under subsection 
(a)(1) with respect to qualified equipment through 
which current generation broadband services are 
provided, if the qualified equipment is capable of 
serving both qualified subscribers and other sub-
scribers, the qualified broadband expenditures shall 
be multiplied by a fraction— 
‘‘(A) the numerator of which is the sum of 
the number of potential qualified subscribers 
within the rural areas and the underserved 
areas which the equipment is capable of serving 
with current generation broadband services, and 
‘‘(B) the denominator of which is the total 
potential subscriber population of the area 
VerDate Aug 31 2005 
05:52 Apr 05, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1818.IH
H1818
jcorcoran on PROD1PC62 with BILLS
which the equipment is capable of serving with 
current generation broadband services. 
‘‘(2) NEXT
GENERATION
BROADBAND
SERV-
ICES.—For purposes of determining the amount of 
qualified broadband expenditures under subsection 
(a)(1) with respect to qualified equipment through 
which next generation broadband services are pro-
vided, if the qualified equipment is capable of serv-
ing both qualified subscribers and other subscribers, 
the qualified expenditures shall be multiplied by a 
fraction— 
‘‘(A) the numerator of which is the sum 
of— 
‘‘(i) the number of potential qualified 
subscribers within the rural areas and un-
derserved areas, plus 
‘‘(ii) the number of potential qualified 
subscribers within the area consisting only 
of residential subscribers not described in 
clause (i), 
which the equipment is capable of serving with 
next generation broadband services, and 
‘‘(B) the denominator of which is the total 
potential subscriber population of the area 
VerDate Aug 31 2005 
05:52 Apr 05, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1818.IH
H1818
jcorcoran on PROD1PC62 with BILLS