[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3598 Introduced in House (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.
    ``(b) Dollar Limitation.--
            ``(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.
    ``(d) No Double Benefit.--
            ``(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.
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