Title: Rural Broadband Connectivity Act of 2019
Policy area: Taxation

Summary:
Rural Broadband Connectivity Act of 2019
This bill allows a business-related tax credit for up to 30% of the cost of qualified broadband property in a qualified rural census tract. The bill imposes a limit on the amount of such credit based upon the number of potential customers residing in a rural area and served by the broadband project (multiplied by $170).
A qualified rural census tract must be underserved and have less than 50% of its residents with access to broadband service.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3999 Introduced in House (IH)]

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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 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 
2019''.

SEC. 2. RURAL BROADBAND TAX CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 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 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 the last day of the fourth month beginning after the date 
        of the enactment of this section 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,
                    ``(B) having less than 50 percent of residents with 
                access to broadband service, and
                    ``(C) being underserved and not at risk of 
                experiencing duplicative service expansion or 
                overbuilding of existing broadband infrastructure.
    ``(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 the last day of the tenth calendar year beginning 
after the date of the enactment of this section.''.
    (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 following 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.
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