Title: Rural Broadband Connectivity Act of 2018
Policy area: Taxation

Summary:
Rural Broadband Connectivity Act of 2018
This bill amends the Internal Revenue Code to allow a tax credit for a portion of the cost of a broadband project designed to expand the number of individuals with broadband service in a qualified rural census tract. A "qualified rural census tract" must be designated by the Department of the Treasury as: (1) being rural, and (2) having less than 50% of residents with access to broadband service.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6871 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6871

   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

                           September 25, 2018

 Mr. Marino (for himself, Mr. Abraham, Mr. Barletta, Mr. Bergman, 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 Representatives 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 
2018''.

SEC. 2. RURAL BROADBAND TAX CREDIT.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
inserting after subsection 48D the following new section:

``SEC. 48E 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 during 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 individual--
                    ``(A) who resides in a qualified rural census 
                tract, and
                    ``(B) whom such taxpayer demonstrates to the 
                satisfaction of the Secretary would upon request be 
                provided broadband service by the taxpayer 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 defined in section 601(b) of the 
        Rural Electrification Act of 1936) that meets the minimum 
        acceptable level for such service (as established by the 
        Secretary 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 December 31, 2018, by the Secretary (in consultation with 
        the Chairman of the Federal Communications Commission, the 
        Assistant Secretary of Commerce for Communications and 
        Information who is head of the National Telecommunications and 
        Information Administration, and the Secretary of Agriculture) 
        as--
                    ``(A) being rural, and
                    ``(B) having less than 50 percent of residents with 
                access to broadband service.
    ``(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 
subsection (a) for the succeeding taxable year.
    ``(e) Termination.--This section shall not apply to property placed 
in service after December 31, 2028.''.
    (b) Conforming Amendment.--Section 46 is amended by striking 
``and'' at the end of paragraph (5), by striking the period at the end 
of paragraph (6) and inserting ``, and'', and by adding at the end the 
following new paragraph:
            ``(7) the rural broadband credit.''.
    (c) Clerical Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 48E. Rural broadband credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2018.
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