I 
116TH CONGRESS 
1ST SESSION H. R. 3999 
To amend the Internal Revenue Code of 1986 to allow for a credit against 
tax for placing in service qualified broadband property to expand the 
level of broadband service in a qualified rural census tract. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2019 
Mr. BERGMAN (for himself, Mr. ABRAHAM, and Mr. GOSAR) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow for 
a credit against tax for placing in service qualified 
broadband property to expand the level of broadband 
service in a qualified rural census tract. 
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 ‘‘Rural Broadband 
Connectivity Act of 2019’’. 
SEC. 2. RURAL BROADBAND TAX CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after subsection 48C the 
following new section: 
‘‘SEC. 48D. RURAL BROADBAND CREDIT. 
‘‘(a) IN GENERAL.—For the purposes of section 38, 
the rural broadband credit for any taxable year is an 
amount equal to 30 percent of the basis of qualified 
broadband property placed in service by the taxpayer dur-
ing such taxable year. 
‘‘(b) CAP ON CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable to a taxpayer under subsection (a) for any 
property for a taxable year shall not exceed an 
amount equal to the product of— 
‘‘(A) the value of the number of qualified 
potential customers served by the qualifying 
broadband project for which such property is 
necessary, multiplied by 
‘‘(B) $170. 
‘‘(2) QUALIFIED POTENTIAL CUSTOMER.—For 
purposes of this section, the term ‘qualified potential 
customer’ means, with respect to a taxpayer, an in-
dividual— 
‘‘(A) who resides in a qualified rural cen-
sus tract, and 
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‘‘(B) whom such taxpayer demonstrates to 
the satisfaction of the Secretary would upon re-
quest be provided broadband service by the tax-
payer for a customary charge for commencing 
broadband service of no more than $1,000. 
‘‘(c) QUALIFIED BROADBAND PROPERTY.—For the 
purposes of this section— 
‘‘(1) 
IN
GENERAL.—The 
term 
‘qualified 
broadband property’ means property necessary for a 
qualifying broadband project. 
‘‘(2) QUALIFYING BROADBAND PROJECT.—The 
term ‘qualifying broadband project’ means any 
project designed to expand the number of individuals 
with broadband service in a qualified rural census 
tract. 
‘‘(3) 
BROADBAND
SERVICE.—The 
term 
‘broadband service’ means broadband service (as de-
fined in section 601(b) of the Rural Electrification 
Act of 1936) that meets the minimum acceptable 
level for such service (as established by the Sec-
retary of Agriculture pursuant to section 601(e) of 
the Rural Electrification Act of 1936). 
‘‘(4) QUALIFIED RURAL CENSUS TRACT.—The 
term ‘qualified rural census tract’ means a census 
tract designated not later than the last day of the 
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fourth month beginning after the date of the enact-
ment of this section by the Secretary (in consulta-
tion with the Chairman of the Federal Communica-
tions Commission, the Assistant Secretary of Com-
merce for Communications and Information who is 
head of the National Telecommunications and Infor-
mation Administration, and the Secretary of Agri-
culture) as— 
‘‘(A) being rural, 
‘‘(B) having less than 50 percent of resi-
dents with access to broadband service, and 
‘‘(C) being underserved and not at risk of 
experiencing duplicative service expansion or 
overbuilding of existing broadband infrastruc-
ture. 
‘‘(d) CARRYOVER OF CERTAIN AMOUNTS.—If, for the 
taxable year, the amount which (but for subsection (b)) 
would have been taken into account under subsection (a) 
exceeds the limitation of subsection (b), then the amount 
of such excess shall be taken into account under sub-
section (a) for the succeeding taxable year. 
‘‘(e) TERMINATION.—This section shall not apply to 
property placed in service after the last day of the tenth 
calendar year beginning after the date of the enactment 
of this section.’’. 
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(b) CONFORMING AMENDMENT.—Paragraph (6) of 
section 46 of such Code is amended to read as follows: 
‘‘(6) the rural broadband credit.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 48D. Rural Broadband Credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the last day of the fourth month beginning after the date 
of the enactment of this Act. 
Æ 
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