Sec. 90121. Credit for operations and maintenance costs of government-owned broadband
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Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: In the case of any eligible governmental entity, there shall be allowed a credit equal to the applicable percentage of the qualified broadband expenses paid or incurred by such entity during the taxable year which credit shall be payable by the Secretary as provided in subsection (b). Upon receipt from an eligible governmental entity of such information as the Secretary may require for purposes of carrying out this section, the Secretary shall pay to such entity the amount of the credit determined under subsection
(a)for the taxable year. The amount of qualified broadband expenses taken into account under this section for any taxable year with respect to any qualified broadband network shall not exceed the product of $400 multiplied by the number of qualified households subscribed to the qualified broadband service provided by such network (determined as of any time during such taxable year). For purposes of this section— The term applicable percentage means— in the case of any taxable year beginning in 2020 through 2025, 30 percent, in the case of any taxable year beginning in 2026, 26 percent, and in the case of any taxable year beginning in 2027, 24 percent. The term eligible governmental entity means— any State, local, or Indian tribal government, any political subdivision or instrumentality of any government described in subparagraph (A), and any entity wholly owned by one or more entities described in subparagraph
(A)or (B). For purposes of this paragraph, the term State includes any possession of the United States. The term qualified broadband expenses means so much of the amounts paid or incurred for the operation and maintenance of a qualified broadband network as are properly allocable to qualified households subscribed to the qualified broadband service provided by such network. The term qualified household means a personal residence which— is located in a low-income community (as defined in section 45D(e)), and did not have access to qualified broadband service from the eligible governmental entity (determined as of the beginning of the taxable year of such entity). The term qualified broadband network means property owned by an eligible governmental entity and used for the purpose of providing qualified broadband service. The term qualified broadband service means fixed, terrestrial broadband service providing downloads at a speed of at least 25 megabits per second and uploads at a speed of at least 3 megabits per second. Except as otherwise provided by the Secretary, the term taxable year means, with respect to any eligible governmental entity, the fiscal year of such entity. For purposes of subsection (d)(3), amounts shall be treated as properly allocated if allocated ratably among the subscribers of the qualified broadband service. Qualified broadband expenses shall not include any amount which is paid or reimbursed (directly or indirectly) by any grant from the Federal Government. The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section. No credit shall be allowed under this section for any taxable year beginning after December 31, 2027. . section 6431B( of the Internal Revenue Code of 1986 b ) Section 255(h) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 905(h) ) is amended by inserting: Payments made under after the item related to Payments for Foster Care and Permanency. section 6431B(b) of the Internal Revenue Code of 1986 Section 1324(b)(2) of title 31, United States Code, is amended by striking or 6431A and inserting 6431A, or 6431B . The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 6431B. Credit for operations and maintenance costs of government-owned broadband. . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.
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Sec. 90121
Credit for operations and maintenance costs of government-owned broadband
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