HR 3598 IH
106th CONGRESS
2d Session
H. R. 3598
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for businesses which provide free public Internet access.
IN THE HOUSE OF REPRESENTATIVES
February 8, 2000
Mr. ROGAN 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 a credit against
income tax for businesses which provide free public Internet access.
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 `National Free Public Internet Access Act of
2000'.
SEC. 2. CREDIT FOR BUSINESSES WHICH PROVIDE FREE PUBLIC INTERNET
ACCESS.
(a) IN GENERAL- Subpart D of part IV of subchapter 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 new section:
`SEC. 45D. CREDIT FOR BUSINESS-PROVIDED FREE PUBLIC INTERNET ACCESS.
`(a) IN GENERAL- For purposes of section 38, the free public Internet
access credit determined under this section for the taxable year is an amount
equal to 100 percent of the Internet access expenditures of the taxpayer for
such taxable year.
`(1) IN GENERAL- The credit allowable under subsection (a) for any
taxable year shall not exceed $100,000.
`(2) AGGREGATION RULES- All persons which are treated as a single
employer under subsections (a) and (b) of section 52 shall be treated as a
single taxpayer for purposes of paragraph (1).
`(c) INTERNET ACCESS EXPENDITURE- For purposes of this section, the term
`free public Internet access expenditure' means any amount paid or incurred
during the taxable year--
`(1) to acquire any computer--
`(A) used exclusively in providing Internet access without charge to
the general public, and
`(B) with respect to which a deduction for depreciation (or
amortization in lieu of depreciation) is allowable, and
`(2) for Internet access for such computer.
`(1) REDUCTION IN BASIS- For purposes of this subtitle, if a credit is
determined under this section with respect to any property, the basis of
such property shall be reduced by the amount of the credit so
determined.
`(2) OTHER DEDUCTIONS AND CREDITS- No deduction or credit shall be
allowed under any other provision of this chapter with respect to the amount
of the credit determined under this section.
`(e) RECAPTURE IN CERTAIN CASES- The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable under subsection
(a) with respect to any property which is not used exclusively in providing
Internet access without charge to the general public at any time.'
(b) CONFORMING AMENDMENTS-
(1) Section 38(b) of such Code is amended--
(A) by striking `plus' at the end of paragraph (11),
(B) by striking the period at the end of paragraph (12) and inserting
`, plus', and
(C) by adding at the end the following new paragraph:
`(13) the free public Internet access credit determined under section
45D.'.
(2) Subsection (d) of section 39 of such Code (relating to carryback and
carryforward of unused credits) is amended by adding at the end the
following new paragraph:
`(9) NO CARRYBACK OF SECTION 45D CREDIT BEFORE JANUARY 1, 2001- No
portion of the unused business credit for any taxable year which is
attributable to the credit determined under section 45D may be carried back
to a taxable year beginning before January 1, 2001.'.
(3) Subsection (a) of section 1016 of such Code (relating to adjustments
to basis) is amended by striking `and' at the end of paragraph (26), by
striking the period at the end of paragraph (27) and inserting `, and', and
by adding at the end the following new paragraph:
`(28) to the extent provided in section 45D(d)(1) (relating to credit
for business-provided free Internet access.'.
(4) The table of sections for subpart D of part IV of subchapter A of
chapter 1 of such Code is amended by adding at the end the following new
item:
`Sec. 45D. Credit for business-provided free public Internet access.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 2000.
END