I 
110TH CONGRESS 
2D SESSION 
H. R. 5682 
To improve access to broadband service in rural and underserved areas 
of the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2008 
Mr. ALLEN introduced the following bill; which was referred to the Committee 
on Energy and Commerce, and in addition to the Committees on Ways 
and Means and Agriculture, 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 improve access to broadband service in rural and under-
served areas of the United States, 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 ‘‘Rural America Com-
munication Expansion for the Future Act of 2008’’. 
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TITLE I—TAX INCENTIVES FOR 
BROADBAND 
SERVICES 
IN 
RURAL AND UNDERSERVED 
AREAS 
SEC. 101. EXPENSING OF BROADBAND INTERNET ACCESS 
EXPENDITURES. 
(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— 
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‘‘(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— 
‘‘(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 
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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— 
‘‘(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— 
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‘‘(i) is originally placed in service 
after the date of the enactment of this sec-
tion by any person, and 
‘‘(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 
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‘‘(B) the denominator of which is the total 
potential subscriber population of the area 
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 
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‘‘(B) the denominator of which is the total 
potential subscriber population of the area 
which the equipment is capable of serving with 
next generation broadband services. 
‘‘(e) DEFINITIONS.—For purposes of this section— 
‘‘(1) ANTENNA.—The term ‘antenna’ means 
any device used to transmit or receive signals 
through the electromagnetic spectrum, including sat-
ellite equipment. 
‘‘(2) CABLE OPERATOR.—The term ‘cable oper-
ator’ has the meaning given such term by section 
602(5) of the Communications Act of 1934 (47 
U.S.C. 522(5)). 
‘‘(3) COMMERCIAL
MOBILE
SERVICE
CAR-
RIER.—The term ‘commercial mobile service carrier’ 
means any person authorized to provide commercial 
mobile radio service as defined in section 20.3 of 
title 47, Code of Federal Regulations. 
‘‘(4) CURRENT GENERATION BROADBAND SERV-
ICE.—The term ‘current generation broadband serv-
ice’ means the transmission of signals at a rate of 
at least 5,000,000 bits per second to the subscriber 
and at least 1,000,000 bits per second from the sub-
scriber. 
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‘‘(5) MULTIPLEXING
OR
DEMULTIPLEXING.— 
The term ‘multiplexing’ means the transmission of 2 
or more signals over a single channel, and the term 
‘demultiplexing’ means the separation of 2 or more 
signals previously combined by compatible multi-
plexing equipment. 
‘‘(6) NEXT
GENERATION
BROADBAND
SERV-
ICE.—The term ‘next generation broadband service’ 
means the transmission of signals at a rate of at 
least 50,000,000 bits per second to the subscriber 
and at least 10,000,000 bits per second from the 
subscriber. 
‘‘(7) 
NONRESIDENTIAL
SUBSCRIBER.—The 
term ‘nonresidential subscriber’ means any person 
who purchases broadband services which are deliv-
ered to the permanent place of business of such per-
son. 
‘‘(8) OPEN
VIDEO
SYSTEM
OPERATOR.—The 
term ‘open video system operator’ means any person 
authorized to provide service under section 653 of 
the Communications Act of 1934 (47 U.S.C. 573). 
‘‘(9) OTHER
WIRELESS
CARRIER.—The term 
‘other wireless carrier’ means any person (other than 
a telecommunications carrier, commercial mobile 
service carrier, cable operator, open video system op-
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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 equipment which provides 
current generation broadband services or next 
generation broadband services— 
‘‘(i) at least a majority of the time 
during periods of maximum demand to 
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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 deduction is al-
lowed 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, 
‘‘(ii) extends from the customer side 
of the mobile telephone switching office to 
a transmission/receive antenna (including 
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, 
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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) 
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-
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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
SUBSCRIBER.—The term 
‘qualified subscriber’ means— 
‘‘(A) with respect to the provision of cur-
rent generation broadband services— 
‘‘(i) any nonresidential subscriber 
maintaining a permanent place of business 
in a rural area or underserved area, or 
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‘‘(ii) any residential subscriber resid-
ing in a dwelling located in a rural area or 
underserved 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 or underserved area, or 
‘‘(ii) any residential subscriber. 
‘‘(15) RESIDENTIAL
SUBSCRIBER.—The term 
‘residential subscriber’ means any individual who 
purchases broadband services which are delivered to 
such individual’s dwelling. 
‘‘(16) 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 
‘‘(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. 
‘‘(17) RURAL
SUBSCRIBER.—The term ‘rural 
subscriber’ means any residential subscriber residing 
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in a dwelling located in a rural area or nonresiden-
tial subscriber maintaining a permanent place of 
business located in a rural area. 
‘‘(18) 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. 
‘‘(19) SATURATED MARKET.—The term ‘satu-
rated market’ means any census tract in which, as 
of the date of the enactment of this section— 
‘‘(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— 
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‘‘(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 deduction is al-
lowed under subsection (a)(1). 
‘‘(20) SUBSCRIBER.—The term ‘subscriber’ 
means any person who purchases current generation 
broadband services or next generation broadband 
services. 
‘‘(21) 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— 
‘‘(A) includes all members of an affiliated 
group of which a telecommunications carrier is 
a member, and 
‘‘(B) does not include a commercial mobile 
service carrier. 
‘‘(22) TOTAL
POTENTIAL
SUBSCRIBER
POPU-
LATION.—The term ‘total potential subscriber popu-
lation’ means, with respect to any area and based on 
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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. 
‘‘(23) UNDERSERVED AREA.—The term ‘under-
served area’ means— 
‘‘(A) any census tract which is located in— 
‘‘(i) an empowerment zone or enter-
prise community designated under section 
1391, or 
‘‘(ii) the District of Columbia Enter-
prise Zone established under section 1400, 
or 
‘‘(B) any census tract— 
‘‘(i) the poverty level of which is at 
least 30 percent (based on the most recent 
census data), and 
‘‘(ii) the median family income of 
which does not exceed— 
‘‘(I) in the case of a census tract 
located in a metropolitan statistical 
area, 70 percent of the greater of the 
metropolitan area median family in-
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come or the statewide median family 
income, and 
‘‘(II) in the case of a census tract 
located in a nonmetropolitan statis-
tical area, 70 percent of the non-
metropolitan statewide median family 
income. 
‘‘(24) 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. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) PROPERTY USED OUTSIDE THE UNITED 
STATES, ETC., NOT
QUALIFIED.—No expenditures 
shall be taken into account under subsection (a)(1) 
with respect to the portion of the cost of any prop-
erty referred to in section 50(b) or with respect to 
the portion of the cost of any property specified in 
an election under section 179. 
‘‘(2) BASIS REDUCTION.— 
‘‘(A) IN GENERAL.—For purposes of this 
title, the basis of any property shall be reduced 
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by the portion of the cost of such property 
taken into account under subsection (a)(1). 
‘‘(B) ORDINARY
INCOME
RECAPTURE.— 
For purposes of section 1245, the amount of 
the deduction allowable under subsection (a)(1) 
with respect to any property which is of a char-
acter subject to the allowance for depreciation 
shall be treated as a deduction allowed for de-
preciation 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) of the Internal 
Revenue Code of 1986 (relating to modifications) is 
amended by adding at the end the following new para-
graph: 
‘‘(20) SPECIAL RULE FOR MUTUAL OR COOPER-
ATIVE TELEPHONE COMPANIES.—A mutual or coop-
erative 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 
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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 allowed as a deduction under section 191 and 
the basis of any property to which this paragraph 
applies 
shall 
be 
reduced 
under 
section 
1016(a)(38).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 263(a)(1) of the Internal Revenue 
Code of 1986 (relating to capital expenditures) is 
amended by striking ‘‘or’’ at the end of subpara-
graph (J), by striking the period at the end of sub-
paragraph (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) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
191(f)(2).’’. 
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(3) The table of sections for part VI of sub-
chapter A of chapter 1 of such Code 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 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 (16), (22), and (23) of section 191(e) of 
the Internal Revenue Code of 1986 (as added by 
this section). In making such designations, the Sec-
retary of the Treasury shall consult with such other 
departments and agencies as the Secretary deter-
mines 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)(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-
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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 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). 
(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 
eliminating 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 
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deduct qualified broadband expenditures under sec-
tion 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 facilities offering expanded broadband access to 
the Internet for users in certain low income and 
rural areas of the United States, as well as to resi-
dential users nationwide, in a manner that main-
tains competitive neutrality among the various class-
es 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 serv-
ices, 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. 
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(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures incurred after the 
date of the enactment of this Act. 
SEC. 102. CREDIT FOR OPERATIONAL EXPENSES FOR WIRE-
LESS 
BROADBAND 
NETWORKS 
SERVING 
RURAL OR UNDERSERVED AREAS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following: 
‘‘SEC. 45O. CREDIT FOR OPERATIONAL EXPENSES FOR 
WIRELESS BROADBAND NETWORKS SERVING 
RURAL OR UNDERSERVED AREAS. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the wireless broadband operations credit determined under 
this section for the taxable year is the amount equal to 
the qualified operational expenses of the taxpayer for the 
taxable year. 
‘‘(b) LIMITATION.—The amount allowed as a credit 
under this section for a taxable year shall not exceed 
$10,000. 
‘‘(c) QUALIFIED
OPERATIONAL
EXPENSES.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified oper-
ational expenses’ means amounts paid or incurred to 
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provide broadband services in the United States to 
rural subscribers or underserved subscribers through 
the radio transmission of energy. Such amounts does 
not includes amounts properly allocable to capital 
account. 
‘‘(2) 
BROADBAND
SERVICES.—The 
term 
‘broadband services’ means the transmission of sig-
nals at a rate of at least 5,000,000 bits per second 
to the subscriber and at least 1,000,000 bits per sec-
ond from the subscriber. 
‘‘(3) OTHER DEFINITIONS.—The terms ‘rural 
area’, ‘subscriber’, ‘underserved area’, have the 
meanings given the respective term by 191(e). 
‘‘(d) RELATED PERSONS.—For purposes of this sec-
tion, all persons treated as a single employer under sub-
section (a) or (b) of section 52 shall be treated as a single 
taxpayer. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—For purposes 
of this section, no amount taken into account as a deduc-
tion or credit under any other provision of this chapter 
shall be taken into account under this section.’’. 
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) of such Code (relating to current year business 
credit) is amended by striking ‘‘plus’’ at the end of para-
graph (30), by striking the period at the end of paragraph 
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(31), and inserting ‘‘, plus’’, and by adding at the end 
the following: 
‘‘(32) the wireless broadband operations credit 
determined under section 45O(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by at the end the following: 
‘‘Sec. 45O. Credit for operational expenses for wireless broadband networks 
serving rural or underserved areas.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
TITLE II—NTIA GRANT 
PROGRAM 
SEC. 201. ESTABLISHMENT OF NTIA GRANT PROGRAM FOR 
BROADBAND DEPLOYMENT IN RURAL AND 
UNDERSERVED AREAS. 
The National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 901 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 159. RURAL BROADBAND DEPLOYMENT GRANT PRO-
GRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary of Commerce, 
acting through the NTIA, shall establish a competitive 
program to provide an eligible unit of local government 
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with a grant of not more than $75,000 to establish pub-
licly-available networks of broadband service. 
‘‘(b) ELIGIBILITY.—In order to be eligible to receive 
a grant under this section, an eligible unit of local govern-
ment shall prepare and submit an application at such 
time, in such form, and with such information and assur-
ances as the Secretary may require, including an assur-
ance that the eligible unit of local government will take 
such steps as are necessary to maintain the equipment and 
devices, including hiring and training personnel, to main-
tain the project for a 5-year period beginning on either 
the date when such network is established or 1 year after 
the grant is received, whichever is earlier. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) 
BROADBAND
SERVICE.—The 
term 
‘broadband service’ means the transmission of sig-
nals at a rate of at least 5,000,000 bits per second 
to the subscriber and at least 1,000,000 bits per sec-
ond from the subscriber. 
‘‘(2) ELIGIBLE
UNIT
OF
LOCAL
GOVERN-
MENT.—The term ‘eligible unit of local government’ 
means a unit of local government that contains with-
in its jurisdiction at least one rural area or under-
served area. 
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