1.Short
title; table of contents
(a)This Act may be cited
as the Connecting America Act of
2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Broadband Internet investment tax credit.
Sec. 3. Credit to holders of Broadband America
Bonds.
Sec. 4. Office of National Broadband Strategy.
Sec. 5. Facility modifications.
Sec. 6. Adoption incentives for broadband.
2.Broadband
Internet investment tax credit
(a)Subpart E of part IV of chapter 1 of the Internal Revenue
Code of 1986 (relating to rules for computing investment credit) is amended by
inserting after section 48C the following new section:
48D.Broadband
Internet investment tax credit
(a)For purposes of section 46, in the case of an eligible
taxpayer, the broadband Internet investment tax credit for any taxable year
shall be determined—
(1)in the case of a
credit calculated according to the requirements under subsection (c)(1), using
the subscriber service speeds available on the first day of the taxable year in
which a qualified broadband provider makes a qualified investment resulting in
percentage increases in service speeds established under such subsection,
and
(2)in the case of a
credit calculated according to the requirements under subsection (c)(2), when a
qualified broadband provider makes a qualified investment resulting in a
service speed threshold established under such subsection.
(b)For purposes of this section—
(1)
(A)The term qualified investment means any
expenditure for qualified equipment made by a qualified broadband provider
during a taxable year which—
(i)in the case of a
credit calculated according to the requirements under subsection (c)(1)—
(I)increases the
available service speeds to at least 50 megabits per second downstream during
the beginning of the taxable year in which the qualified broadband provider
makes such investment, or
(II)results in the
extension of a qualified broadband provider’s existing physical plant to
unserved areas and provides broadband service speeds of at least 10 megabits
per second downstream, and
(ii)in the case of a
credit calculated according to the requirements under subsection (c)(2),
increases the available service speeds by increasing existing service speeds to
an advertised maximum service speed of at least 50 megabits per second
downstream.
(B)Such term shall include any investment made
during the 9-month period ending with the date of the enactment of this section
is eligible for the broadband Internet investment tax credit if such investment
meets all other requirements of this section.
(2)The term eligible taxpayer means any
qualified broadband provider regardless of the technology used to deploy
broadband services.
(3)Qualified
broadband providerThe term qualified broadband
provider means any—
(A)cable
operator,
(B)commercial mobile
service carrier,
(C)open video system
operator,
(D)satellite
carrier,
(E)telecommunications
carrier, or
(F)other wireless
carrier,
offering
broadband service to subscribers through qualified equipment.(4)The term unserved area means any political
subdivision of a State, including any city, municipality, township, or
village—
(A)in which no
non-residential subscribers maintaining a permanent place of business and no
residential subscribers in a fixed dwelling have access to a terrestrial
broadband service, and
(B)which is
certified by such State as an unserved area not later than 180 days after the
date of the enactment of this section.
(5)An entity identified in paragraph (3) shall be
considered to be a provider offering broadband service to subscribers
if—
(A)such subscriber
has been passed by the provider’s equipment and may be connected to such
equipment for a fee, and
(B)the provider is
physically able to deliver broadband service.
(6)
(A)The term qualified equipment means any
property—
(i)used to provide
broadband service,
(ii)which meets the
eligibility requirements of subparagraph (B), and
(iii)for which
depreciation (or amortization in lieu of depreciation) is allowable.
(B)Not
later than 1 year after the date of the enactment of this section, the
Secretary shall publish and maintain electronic guidance for qualified
broadband providers that includes examples of the types of equipment that
qualify for the broadband Internet investment tax credit and examples of
equipment and uses that do not qualify for such credit. Such guidance shall be
placed on the Internal Revenue Service Internet site.
(C)Limitations on
eligible equipmentEquipment meeting the criteria established in
this section shall be eligible for the broadband Internet investment tax credit
in taxable years beginning after December 31, 2008, and before January 1,
2104:
(i)Equipment that
extends from the last point of switching to a subscriber location in the case
of a telecommunications carrier or broadband-over-power-line operator, or
extends from the subscriber side of the head end to the subscriber location in
the case of a cable operator or open video system operator.
(ii)Equipment that
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
subscriber location that is owned or leased in the case of a satellite carrier
or other wireless carrier.
(iii)Equipment used
to route traffic between the head ends, central offices, transmission/receive
antennas, or other aggregation points.
(iv)Supporting
technological equipment used to increase the bandwidth available to
subscribers, enable higher quality video resolution or more efficient
utilization of other qualifying equipment, or allow deployment of more content
over a greater distance. Such supporting technological equipment shall include
broadband electrical and optical networking equipment, next generation network
service routers and Internet protocol routers, supporting network router
management systems, the software contained within the equipment, and other
supporting technological equipment deemed eligible by the Secretary.
(v)Transmission
facilities and other equipment used to connect broadband networks to Internet
backbone facilities, where terrestrial facilities for such connections do not
already exist.
(7)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)).
(8)Commercial
mobile service carrierThe term commercial mobile service
carrier means any person or entity authorized to provide commercial
mobile radio service as defined in section 20.3 of title 47 of the Code of
Federal Regulations.
(9)Open video
system operatorThe term open video system operator
means any person or entity authorized to provide services under section 653 of
the Communications Act of 1934 (47 U.S.C. 573).
(10)The term satellite carrier means any person
or entity using the facilities of a satellite or satellite service, licensed by
the Federal Communications Commission to operate in the Fixed-Satellite Service
area under part 25 of title 47 of the Code of Federal Regulations or the Direct
Broadcast Satellite Service under part 100 of such title, to establish an
operate a channel of communications for distribution of signals, and owning or
leasing a capacity or service on a satellite for the purpose of providing
point-to-multipoint distribution.
(11)Telecommunications
carrierThe term telecommunications carrier has the
meaning provided in 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
any commercial mobile service carrier.
(12)The term other wireless carrier means any
person or entity (other than a telecommunications carrier, commercial mobile
service carrier, cable operator, open video system operator, or satellite
carrier) offering broadband service to subscribers through the radio
transmission of energy.
(c)
(1)Percentage
increase in service speed; availability to unserved areasThe
broadband Internet investment tax credit for any taxable year calculated
according to the requirements under this paragraph shall be—
(A)15 percent of the
qualified investment for such taxable year which increases existing service
speeds for current subscribers by at least 50 percent above the service speeds
available on the first day of the taxable year,
(B)20 percent of
such qualified investment which increases existing service speeds for current
subscribers to at least 100 percent above such service speeds,
(C)25 percent of
such qualified investment which increases existing service speeds for current
subscribers to at least 200 percent above such service speeds, and
(D)30 percent of
such qualified investment which results in the availability of service to an
unserved area, but only if such service is at speeds of at least 10 megabits
per second downstream.
(2)Increase to
advertised maximumThe broadband Internet investment tax credit
for any taxable year calculated according to the requirements under this
paragraph shall be—
(A)15 percent of the
qualified investment for such taxable year which improves service speeds to an
advertised maximum of at least 50 megabits per second downstream,
(B)20 percent of the
qualified investment for such taxable year which improves service speeds to an
advertised maximum of at least 75 megabits per second downstream, and
(C)25 percent of the
qualified investment for such taxable year which improves service speeds to an
advertised maximum of at least 100 megabits per second downstream.
(d)Certification
requirementsNot later than 120 days after the date of the
enactment of this section, the Secretary shall promulgate rules setting forth
the information a qualified broadband provider claiming a credit under this
section must provide to certify service speeds available at the beginning of
the taxable year and the available service speeds following the qualified
investment. The rules shall require at a minimum that a qualified broadband
provider submit an affidavit of a corporate officer attesting to the
truthfulness and accuracy of the speed certifications and level of
investment.
(e)Treatment of
person not able To use credit
(1)Except as otherwise provided in this subsection—
(A)any credit
allowable under subsection (a) with respect to qualified equipment purchased or
installed by a qualified broadband provider may be transferred to, and used by,
a third party as provided in this subsection, and
(B)the determination
as to whether the credit is allowable shall be made without regard to the
taxable or tax-exempt status of the person.
(2)
(A)A person unable to use the credit allowable under
subsection (a) may transfer such credit to another person, for use by such
person, in consideration for the purchase or installation of qualified
equipment. Such transfer may be revoked only with the consent of the
Secretary.
(B)The
Secretary shall prescribe such regulations and reporting requirements as
necessary to ensure that any credit allowable under subsection (a) is claimed
once and not reassigned by such other person.
(C)Transfer
proceeds treated as arising from essential government
functionAny proceeds derived by a State, local, or Indian tribal
governmental unit, agency, or instrumentality from the transfer of any credit
under subparagraph (A) shall be treated as arising from the exercise of an
essential government function.
(D)Exception for
certain nontaxpayersThis paragraph shall not apply to—
(i)any Federal,
State, or local government (or any political subdivision, agency, or
instrumentality thereof),
(ii)any organization
described in section 501(c) and exempt from tax under section 501(a),
and
(iii)any partnership
or other pass-thru entity in which an entity described in clause (i) or (ii)
(or such entities in the aggregate) hold a partnership (or equity or profits)
interest of at least 50 percent.
(3)Any proceeds from a transfer under paragraph (2) of any
credit shall be treated as income to the transferor of the credit (and
deductible to the transferee) for purposes of this subtitle.
(f)This
section shall not apply to expenditures in taxable years beginning after
December 31,
2013.
.
(b)
(1)Section 46(a) of
the Internal Revenue Code of 1986 is amended by striking and
at
the end of paragraph (4), by striking the period at the end of paragraph (5)
and inserting , and
, and by adding at the end the following new
paragraph:
(6)the broadband
Internet investment tax
credit.
.
(2)The table of
sections for subpart E of part IV of chapter 1 of such Code is amended by
inserting after the item relating to section 48C the following new item:
Sec. 48D. Broadband Internet
investment tax
credit.
.
(c)The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act of
1990).
3.Credit to
holders of Broadband America Bonds
(a)Subpart I of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to qualified tax credit bonds) is
amended by adding at the end the following new section:
54G.Credit to
holders of Broadband America Bonds
(a)For purposes of this subpart, the term
Broadband America Bond means any private activity bond issued as
part of an issue if—
(1)100 percent of
the available project proceeds of such issue are to be used for expenditures
incurred by any non-governmental entity in the deployment of broadband services
which meet the requirements of this section,
(2)the bond is
issued by a qualified issuer, and
(3)the issuer
designates such bond for purposes of this section.
For
purposes of this section, the term available project proceeds has
the meaning given such term by section 54A(e)(4) (determined by substituting
1 percent
for 2 percent
in subparagraph (A)(ii)
thereof).(b)Limitation on
amount of bonds designated
(1)There is a national Broadband America Bond limitation
for the 4-year period beginning on the date of the enactment of this section of
$1,000,000,000, and zero thereafter, to be made available from amounts
appropriated under the American Recovery and Reinvestment Act of 2009 to the
Broadband Technology Opportunities Program established under section 6001 of
division B of such Act.
(2)The national Broadband America Bond limitation shall
be allocated by the Secretary, in consultation with the Secretary of Commerce,
among Broadband America Bond projects to ensure that no qualified issuer may
issue Broadband America Bonds in a face amount exceeding $5,000,000.
(c)Other
allocation limitationsIn making any allocation under subsection
(b)(2), the Secretary shall comply with the following guidelines:
(1)Limit based on
existing service availability
(A)An allocation shall not be made to an issuer for a
Broadband America Bond project unless the geographic area of such project
qualifies as an unserved area.
(B)For purposes of subparagraph (A), the term unserved
area means any political subdivision of a State, including any city,
municipality, township, or village—
(i)in which no
non-residential subscribers maintaining a permanent place of business and no
residential subscribers in a fixed dwelling have access to a terrestrial
broadband service, and
(ii)which is
certified by such State as an unserved area not later than 180 days after the
date of the enactment of this section.
(2)Limit based on
project scopeAn allocation shall not be made to an issuer for a
Broadband America Bond project unless the project funds, when combined with
private investment by a provider receiving the project proceeds, will result in
the availability of broadband services to at least 70 percent of the potential
subscribers in the geographic area of such project. For purposes of the
preceding sentence, the term potential subscribers includes all
non-residential subscribers maintaining a permanent place of business and
residential subscribers in a fixed dwelling in the project area.
(3)Limit based on
transmission speedAn allocation shall not be made to an issuer
for a Broadband America Bond project unless the project provides broadband
subscribers with access to the Internet in the normal course of operations at
transmission speeds of at least 10 megabits per second downstream.
(d)Qualified
issuer; selection of providers; notice of opportunity To bid
(1)The term qualified issuer means a
governmental body (as defined in section 54C(d)(3)).
(2)
(A)The qualified issuer, by means of a competitive bidding
process established under subparagraph (B), shall select 1 or more broadband
providers as recipients of the available project proceeds of an issue and shall
contract for the construction of infrastructure providing service to at least
70 percent of all non-residential subscribers maintaining a permanent place of
business and residential subscribers in a fixed dwelling in the project area.
Not later than 120 days after the date of the enactment of this section, the
Secretary shall provide procedures for selecting a broadband provider through a
competitive bidding process. A governmental body (as defined in section
54C(d)(3)) is not eligible to receive or utilize the proceeds of a bond
offering to construct, or own, infrastructure for the provision of broadband
services.
(B)Eligibility for
selection and prohibition on conditionsAll broadband providers
shall be eligible to bid for a contract under subparagraph (A), regardless of
the technology used to deliver the broadband service, and selection and receipt
of available project proceeds may not be conditioned on adoption of open access
or non-discrimination principles.
(C)Notice of
opportunity to bidAt least 60 days prior to conducting a bond
offering under this section, a qualified issuer shall publish notice in each
newspaper with circulation in the proposed project area, and furnish notice on
all government Internet sites in the proposed project area. The Secretary shall
provide an area on the agency's Internet site listing all proposed projects
with contact information for the local government official responsible for the
proposed bond offering to allow interested bidders to contact the qualified
issuer.
(e)Ratable
principal amortization requiredA bond shall not be treated as a
Broadband America Bond unless it is part of an issue which provides for an
equal amount of principal to be paid by the qualified issuer during each
12-month period that the issue is outstanding (other than the first 12-month
period).
.
(b)
(1)Paragraph (1) of
section 54A(d) of the Internal Revenue Code of 1986 is amended by striking
or
at the end of subparagraph (D), by inserting
or
at the end of subparagraph (E), and by inserting after
subparagraph (E) the following new subparagraph:
(F)a Broadband
America
Bond.
.
(2)Subparagraph (C)
of section 54A(d)(2) of such Code is amended by striking and
at
the end of clause (iv), by striking the period at the end of clause (v) and
inserting , and
, and by adding at the end the following new
clause:
(vi)in the case of a
Broadband America Bond, a purpose specified in section
54G(a)(1).
.
(3)The table of
sections for subpart I of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
Sec.54G. Credit to holders of
Broadband America
Bonds.
.
(c)The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.
4.Office of
National Broadband Strategy
(a)There
is established within the National Telecommunications and Information
Administration of the Department of Commerce the Office of National Broadband
Strategy.
(b)The
Office of National Broadband Strategy shall—
(1)contain an
ombudsman function to provide technical assistance to any entity that is
applying for funds under any 1 of the following:
(A)Public
Telecommunications Facilities—Planning and Construction grant program
administered by the National Telecommunications and Information Administration
of the Department of Commerce.
(B)Broadband
Technology Opportunities Program administered by the National
Telecommunications and Information Administration of the Department of
Commerce.
(C)Investments for
Public Works and Economic Development Facilities grant program administered by
the Economic Development Administration of the Department of Commerce.
(D)Rural Telephone
Loans and Loan Guarantee program administered by the Rural Utilities Service of
the Department of Agriculture.
(E)Distance Learning
and Telemedicine Loans and Grant program administered by the Rural Utilities
Service of the Department of Agriculture.
(F)Rural Broadband
Access Loan and Loan Guarantee Program administered by the Rural Utilities
Service of the Department of Agriculture.
(G)Community Connect
Broadband Grant program administered by the Rural Utilities Service of the
Department of Agriculture.
(H)Education
Technology State Grant program administered by the Office of Elementary and
Secondary Education of the Department of Education.
(I)Ready to Teach
grant program administered by the Office of the Assistant Secretary of
Education for Educational Research and Improvement of the Department of
Education.
(J)Special
Education—Technology and Media Services for Individuals with Disabilities grant
program administered by the Office of Special Education and Rehabilitative
Services of the Department of Education.
(K)Telehealth
Network Grant program administered by the Health Resources and Services
Administration of the Department of Health and Human Services.
(L)Medical Library
Assistance program administered by the National Library of Medicine of the
National Institutes of Health of the Department of Health and Human
Services.
(M)State Library
Program administered by the Office of Library Services of the Institute of
Museum and Library Services of the National Foundation on the Arts and
Humanities.
(N)Native American
and Native Hawaiian Library Services program administered by the Office of
Library Services of the Institute of Museum and Library Services of the
National Foundation on the Arts and Humanities.
(O)Appalachian Area
Development grant program administered by the Appalachian Regional Commission
established under chapter 143 of title 40, United States Code.
(P)Delta Area
Economic Development grant program administered by the Delta Regional Authority
established under section 382B of the Consolidated Farm and Rural Development
Act (7 U.S.C. 2009aa–1).
(Q)Denali Commission
Program administered by the Denali Commission established under the Denali
Commission Act of 1998 (42 U.S.C. 3121 note); and
(2)establish and
maintain a webpage that contains links to the programs described under
paragraph (1);
(3)provide technical
assistance to any new program that offers or otherwise makes available funding
for broadband deployment; and
(4)update the
webpage established under paragraph (2) to include any new program described
under paragraph (3).
(c)
(1)Not
later than 90 days after the date of enactment of this Act, the Office of
National Broadband Strategy shall establish an National Advisory Panel on
broadband deployment and adoption comprised of representatives of relevant
sectors of the business community, public interest groups, and other
appropriate groups and Federal agencies to review and evaluate—
(A)the status of
industry efforts to promote broadband in underserved and unserved areas;
(B)the effectiveness
of Federal Government programs that provide funding for the deployment of
broadband, including any program described under subsection (b)(1);
(C)the effect of
broadband deployment levels within the United States on national economic
competitiveness with respect to member countries of the Organization for
Economic Cooperation and Development; and
(D)the feasibility
of creating a single application process for all Federal broadband grant
programs leveraging available technology.
(2)Not
later than 1 year after the date that National Advisory Panel is established
under paragraph (1), and for each year thereafter, the Panel shall submit a
report to Congress that—
(A)describes in
detail any legislative, administrative, or regulatory recommendations to
improve broadband in underserved and unserved areas, including any information
related to such recommendations; and
(B)includes
recommendations as to what reforms to Federal Government programs could
increase the effectiveness of such programs, including changes to eligibility
criteria for program applicants, funding levels, and streamlining application
procedures.
(3)The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to the activities of the National Advisory Panel established
under paragraph (1).
(d)Definition of
technical assistanceFor purposes of this section, the term
technical assistance
includes the provision of—
(1)general
information about the operation and eligibility requirements of programs
described under subsection (b);
(2)advice and
assistance in completing grant or program application materials; and
(3)any other
assistance deemed appropriate by the Secretary of Commerce.
(e)Authorization
of appropriationsThere is authorized to be appropriated to carry
out this section $2,000,000 for each of the fiscal years 2010 through
2014.
5.Notwithstanding
section 704 of the Telecommunications Act of 1996, or any regulation pursuant
thereto, or any other provision of law, a State or local government may not
deny, and shall approve, any eligible facilities request for a modification of
an existing wireless tower that does not substantially change the physical
dimensions of such tower. For purposes of the preceding sentence, the term
eligible facilities request
means any request for modification
of an existing wireless tower that involves—
(1)collocation of
new transmission equipment;
(2)removal of
transmission equipment; and
(3)replacement of
transmission equipment.
6.Adoption
incentives for broadband
(a)
(1)Section 254(h) of the Communications Act of 1934 (47
U.S.C. 254(h)) is amended—
(A)in paragraph
(1)(A)—
(i)by
striking telecommunications services
and inserting
telecommunications services, advanced telecommunications services and
information services, and network management services
; and
(ii)by
striking reasonably comparable to rates charged
and inserting
not to exceed 60 percent less than rates charged
; and
(B)in paragraph
(7)(B)(vi), by striking clinics; and
and inserting “clinics and
any rural healthcare provider, including any—
(I)private physician
office or clinic;
(II)nursing home or
other long term care facility;
(III)hospice service
facility;
(IV)pharmacy;
(V)dental
clinic;
(VI)behavioral
health facility; and
(VII)facility deemed
eligible by the Department of Veterans Affairs to provide health care services
to
veterans;
.
(2)In carrying out the pilot program to fund the
construction of broadband infrastructure to connect rural health care
providers, as such program was established in In the matter of Rural Health
Care Support Mechanism, WC Docket No. 02–60, the Federal Communications
Commission shall abolish the 85 percent cost limitation requirement set forth
in paragraph 14 of such Order.
(b)
(1)In
this section:
(A)Eligible
educational institution or agencyThe term eligible
educational institution or agency means—
(i)a
secondary school, as such term is defined in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801);
(ii)a
2-year institution of higher education, as such term is defined in section 101
of the Higher Education Act of 1965 (20 U.S.C. 1001);
(iii)an adult
education center that is operated by, or on behalf of, a State; or
(iv)a
State educational agency, as such term is defined in section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
(B)The term PlugGED In program means a program
of education that—
(i)leads to a
recognized equivalent of a secondary school diploma;
(ii)integrates the
instruction for such recognized equivalent with training in technology
skills;
(iii)integrates
instruction related to the resources available through broadband Internet usage
for educational development and career development; and
(iv)is
sponsored by a private technology company that will provide 1 or more of the
following:
(I)Educational
materials for the program curriculum.
(II)Assistance in
designing the program curriculum.
(III)Matching funds
for the program, in an amount of not less than 10 percent of the amount of the
grant funds provided under this subsection to the eligible educational
institution or agency receiving the grant.
(C)The
term Secretary means the Secretary of Education, acting through
the Assistant Secretary of the Office of Vocational and Adult Education.
(2)From amounts appropriated under this subsection, the
Secretary shall administer a grant program that awards grants to eligible
educational institutions or agencies to enable such eligible educational
institutions and agencies to carry out PlugGED In programs.
(3)An
eligible educational institution or agency desiring a grant under this
subsection shall submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may provide,
including—
(A)a description of
the private technology company that will be a sponsor of the PlugGED In program
and the type of assistance the sponsor will provide; and
(B)an assurance that
the eligible educational institution or agency will annually submit to the
Secretary information on the number of participants in the PlugGED In program
who have obtained employment within 6 months after completing the program, and
the types of such employment.
(4)The Secretary shall annually prepare and submit to the
Committee on Education and Labor of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the Senate a compilation
of the data described in subsection (3)(B).
(5)Authorization
of appropriationsThere is authorized to be appropriated to carry
out this subsection $10,000,000 for each of the fiscal years 2010 through
2014.