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S.3152
Community Renewal and New Markets Act of 2000 (Introduced in the
Senate)
SEC. 303. BROADBAND INTERNET
ACCESS TAX CREDIT.
(a) IN GENERAL- Subpart E of part IV of chapter 1 (relating to rules for
computing investment credit) is amended by inserting after section 48 the
following new section:
`SEC. 48A. BROADBAND
CREDIT.
`(a) GENERAL RULE- For purposes of section 46, the broadband credit for any taxable year
is the sum of--
`(1) the current generation broadband credit, plus
`(2) the next generation broadband credit.
`(b) CURRENT GENERATION BROADBAND CREDIT; NEXT GENERATION
BROADBAND CREDIT- For purposes
of this section--
`(1) CURRENT GENERATION BROADBAND CREDIT- The current
generation broadband credit
for any taxable year is equal to 10 percent of the qualified expenditures
incurred with respect to qualified equipment offering current generation
broadband services to rural
subscribers or underserved subscribers and taken into account with respect
to such taxable year.
`(2) NEXT GENERATION BROADBAND CREDIT- The next
generation broadband credit
for any taxable year is equal to 20 percent of the qualified expenditures
incurred with respect to qualified equipment offering next generation broadband services to all rural
subscribers, all underserved subscribers, or any other residential
subscribers and taken into account with respect to such taxable year.
`(c) WHEN EXPENDITURES TAKEN INTO ACCOUNT- For purposes of this
section--
`(1) IN GENERAL- Qualified expenditures with respect to qualified
equipment shall be taken into account with respect to the first taxable year
in which current generation broadband services or next
generation broadband services
are offered by the taxpayer through such equipment to subscribers.
`(2) OFFER OF SERVICES- For purposes of paragraph (1), the offer of
current generation broadband
services or next generation broadband services through qualified
equipment occurs when such class of service is purchased by and provided to
at least 10 percent of the subscribers described in subsection (b) which
such equipment is capable of serving through the legal or contractual area
access rights or obligations of the taxpayer.
`(d) SPECIAL ALLOCATION RULES-
`(1) CURRENT GENERATION BROADBAND SERVICES- For purposes of
determining the current generation broadband credit under subsection
(a)(1), if the qualified equipment is capable of serving both the
subscribers described under subsection (b)(1) and other subscribers, the
qualified expenditures shall be multiplied by a fraction--
`(A) the numerator of which is the sum of the total potential
subscriber populations within the rural areas and the underserved areas
which the equipment is capable of serving, and
`(B) the denominator of which is the total potential subscriber
population of the area which the equipment is capable of serving.
`(2) NEXT GENERATION BROADBAND SERVICES- For purposes of
determining the next generation broadband credit under subsection
(a)(2), if the qualified equipment is capable of serving both the
subscribers described under subsection (b)(2) and other subscribers, the
qualified expenditures shall be multiplied by a fraction--
`(A) the numerator of which is the sum of--
`(i) the total potential subscriber populations within the rural
areas and underserved areas, plus
`(ii) the total potential subscriber population of the area
consisting only of residential subscribers not described in clause
(i),
which the equipment is capable of serving, and
`(B) the denominator of which is the total potential subscriber
population of the area which the equipment is capable of serving.
`(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 satellite
equipment.
`(2) CABLE OPERATOR- The term `cable operator' 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 CARRIER- 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 SERVICE- The term `current
generation broadband service'
means the transmission of signals at a rate of at least 1,500,000 bits per
second to the subscriber and at least 200,000 bits per second from the
subscriber.
`(5) NEXT GENERATION BROADBAND SERVICE- The term `next
generation broadband service'
means the transmission of signals at a rate of at least 22,000,000 bits per
second to the subscriber and at least 10,000,000 bits per second from the
subscriber.
`(6) NONRESIDENTIAL SUBSCRIBER- The term `nonresidential subscriber'
means a person or entity who purchases broadband services which are
delivered to the permanent place of business of such person or entity.
`(7) 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).
`(8) 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 operator, or satellite carrier)
providing current generation broadband services or next
generation broadband service
to subscribers through the radio transmission of energy.
`(9) PACKET SWITCHING- The term `packet switching' means controlling or
routing the path of a digitized transmission signal which is assembled into
packets or cells.
`(10) QUALIFIED EQUIPMENT-
`(A) IN GENERAL- The term `qualified equipment' means equipment
capable of providing current generation broadband services or next
generation broadband
services at any time to each subscriber who is utilizing such
services.
`(B) ONLY CERTAIN INVESTMENT TAKEN INTO ACCOUNT- Except as provided in
subparagraph (C), 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, building, dwelling, or office owned or leased by a subscriber in
the case of a telecommunications 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 subscriber in the case of a commercial
mobile service carrier,
`(iii) extends from the customer side of the headend to the outside
of the unit, building, dwelling, or office owned or leased by a
subscriber in the case of a cable operator or open video system
operator, or
`(iv) extends from a transmission/receive antenna (including such
antenna) which transmits and receives signals to or from multiple
subscribers to a transmission/receive antenna (including such antenna)
on the outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a satellite carrier or other
wireless carrier, unless such other wireless carrier is also a
telecommunications carrier.
`(C) PACKET SWITCHING EQUIPMENT- Packet switching equipment,
regardless of location, shall be taken into account under subparagraph (A)
only if it is deployed in connection with equipment described in
subparagraph (B) and it is uniquely designed to perform the function 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 functions 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.
`(11) QUALIFIED EXPENDITURE-
`(A) IN GENERAL- The term `qualified expenditure' means any
amount--
`(i) chargeable to capital account with respect to the purchase and
installation of qualified equipment (including any upgrades thereto) for
which depreciation is allowable under section 168, and
`(I) with respect to the provision of current generation broadband service, after
December 31, 2000, and before January 1, 2004, and
`(II) with respect to the provision of next generation broadband service, after
December 31, 2001, and before January 1, 2005.
`(B) CERTAIN SATELLITE EXPENDITURES EXCLUDED- Such term shall not
include any expenditure with respect to the launching of any satellite
equipment.
`(12) RESIDENTIAL SUBSCRIBER- The term `residential subscriber' means an
individual who purchases broadband services which are
delivered to such individual's dwelling.
`(A) IN GENERAL- The term `rural subscriber' means a residential
subscriber residing in a dwelling located in a rural area or
nonresidential subscriber maintaining a permanent place of business
located in a rural area.
`(B) RURAL AREA- The term `rural area' means any census tract
which--
`(i) is not within 10 miles of any incorporated or census designated
place containing more than 25,000 people, and
`(ii) is not within a county or county equivalent which has an
overall population density of more than 500 people per square mile of
land.
`(14) SATELLITE CARRIER- The term `satellite carrier' means any person
using the facilities of a satellite or satellite service licensed by the
Federal 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 point-to-multipoint
distribution of signals, and owning or leasing a capacity or service on a
satellite in order to provide such point-to-multipoint distribution.
`(15) SUBSCRIBER- The term `subscriber' means a person who purchases
current generation broadband
services or next generation broadband services.
`(16) TELECOMMUNICATIONS CARRIER- The term `telecommunications carrier'
has the meaning given such term by section 3(44) of the Communications 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.
`(17) TOTAL POTENTIAL SUBSCRIBER POPULATION- The term `total potential
subscriber population' means, with respect to any area and based on the most
recent census data, the total number of potential residential subscribers
residing in dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located in such
area.
`(18) UNDERSERVED SUBSCRIBER-
`(A) IN GENERAL- The term `underserved subscriber' means a residential
subscriber residing in a dwelling located in an underserved area or
nonresidential subscriber maintaining a permanent place of business
located in an underserved area.
`(B) UNDERSERVED AREA- The term `underserved area' means any census
tract--
`(i) the poverty level of which is at least 30 percent (based on the
most recent census data),
`(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 income or the statewide median family income,
and
`(II) in the case of a census tract located in a nonmetropolitan
statistical area, 70 percent of the nonmetropolitan statewide median
family income, or
`(iii) which is located in an empowerment zone or enterprise
community designated under section 1391.
`(f) DESIGNATION OF CENSUS TRACTS- The Secretary shall, not later than 90
days after the date of the enactment of this section, designate and publish
those census tracts meeting the criteria described in paragraphs (13)(B) and
(18)(B) of subsection (e), and such tracts shall remain so designated for the
period ending with the applicable termination date described in subsection
(e)(11)(A)(ii).'.
(b) CREDIT TO BE PART OF INVESTMENT CREDIT- Section 46 (relating to the
amount of investment credit) is amended by striking `and' at the end of
paragraph (2), by striking the period at the end of paragraph (3) and
inserting `, and', and by adding at the end the following new paragraph:
`(4) the broadband
credit.'.
(c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE TELEPHONE COMPANIES- Section
501(c)(12)(B) (relating to list of exempt organizations) is amended by
striking `or' at the end of clause (iii), by striking the period at the end of
clause (iv) and inserting `, or', and by adding at the end the following new
clause:
`(v) from sources not described in subparagraph (A), but only to the
extent such income does not in any year exceed an amount equal to the
credit for qualified expenditures which would be determined under
section 48A for such year if the mutual or cooperative telephone company
was not exempt from taxation.'.
(d) CONFORMING AMENDMENT- The table of sections for subpart E of part IV
of subchapter A of chapter 1 is amended by inserting after the item relating
to section 48 the following new item:
`Sec. 48A. Broadband
credit.'.
(e) REGULATORY MATTERS- No Federal or State agency or instrumentality
shall adopt regulations or ratemaking procedures that would have the effect of
confiscating any credit or portion thereof allowed under section 48A of the
Internal Revenue Code of 1986 (as added by this section) or otherwise
subverting the purpose of this section.
(1) SENSE OF CONGRESS- It is the sense of Congress that in order to
maintain competitive neutrality, the credit allowed under section 48A of the
Internal Revenue Code of 1986 (as added by this section) should be
administered in such a manner so as to ensure that each class of provider
receives the same level of financial incentive to deploy current generation
broadband services and next
generation broadband
services.
(2) STUDY AND REPORT- The Secretary of the Treasury shall, within 180
days after the effective date of this section, study the impact of the
credit allowed under section 48A of the Internal Revenue Code of 1986 (as
added by this section) on the relative competitiveness of potential classes
of providers of current generation broadband services and next
generation broadband services,
and shall report to Congress the findings of such study, together with any
legislative or regulatory proposals determined to be necessary to ensure
that the purposes of such credit can be furthered without impacting
competitive neutrality among such classes of providers.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to expenditures incurred after December 31,
2000.
(2) SPECIAL RULE- The amendments made by subsection (c) shall apply to
amounts received after December 31, 2000.
SEC. 304. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.
(a) IN GENERAL- Part IV of subchapter A of chapter 1 (relating to credits
against tax) is amended by adding at the end the following new subpart:
`Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak
Bonds
`Sec. 54. Credit to holders of qualified Amtrak bonds.
`SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.
`(a) ALLOWANCE OF CREDIT- In the case of a taxpayer who holds a qualified
Amtrak bond on a credit allowance date of such bond which occurs during the
taxable year, there shall be allowed as a credit against the tax imposed by
this chapter for such taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to credit allowance dates during
such year on which the taxpayer holds such bond.
`(1) IN GENERAL- The amount of the credit determined under this
subsection with respect to any credit allowance date for a qualified Amtrak
bond is 25 percent of the annual credit determined with respect to such
bond.
`(2) ANNUAL CREDIT- The annual credit determined with respect to any
qualified Amtrak bond is the product of--
`(A) the applicable credit rate, multiplied by
`(B) the outstanding face amount of the bond.
`(3) APPLICABLE CREDIT RATE- For purposes of paragraph (2), the
applicable credit rate with respect to an issue is the rate equal to an
average market yield (as of the day before the date of issuance of the
issue) on outstanding long-term corporate debt obligations (determined under
regulations prescribed by the Secretary).
`(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION- In the case of a bond
which is issued during the 3-month period ending on a credit allowance date,
the amount of the credit determined under this subsection with respect to
such credit allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month period during which
the bond is outstanding. A similar rule shall apply when the bond is
redeemed.
`(c) LIMITATION BASED ON AMOUNT OF TAX-
`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable
year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined in section
26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this part (other than this
subpart and subpart C).
`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under
subsection (a) exceeds the limitation imposed by paragraph (1) for such
taxable year, such excess shall be carried to the succeeding taxable year
and added to the credit allowable under subsection (a) for such taxable
year.
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