Bill Text: DE HB316 | 2011-2012 | 146th General Assembly | Draft
Bill Title: An Act To Amend Title 30 Of The Delaware Code Relating To Tax Credits For Broadband Services To Underserved And Rural Areas.
Spectrum: Slight Partisan Bill (Republican 8-3)
Status: (Introduced - Dead) 2012-06-06 - Stricken [HB316 Detail]
Download: Delaware-2011-HB316-Draft.html
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SPONSOR: |
Rep. Briggs King & Sen. Lawson; |
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Reps. Manolakos, D. Short, Willis; Sens. Bunting, Ennis, Simpson, Sorenson, Venables |
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HOUSE OF REPRESENTATIVES 146th GENERAL ASSEMBLY |
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HOUSE BILL NO. 316 |
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AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO TAX CREDITS FOR BROADBAND SERVICES TO UNDERSERVED AND RURAL AREAS. |
Section 1.Amend Chapter 20, Title 30, Delaware Code by making insertions as shown by underlining to read as follows:
SUBCHAPTER XI.Tax Credit for Broadband Services.
§2098.
(1) For tax years that begin after December 31, 2012, a taxpayer that furnishes broadband services to underserved and rural areas may claim a credit against the tax imposed under this act equal to the applicable percentage of the cost of each qualified broadband property placed in service during the tax year.
(2) If the amount of the credit allowed under this section and any unused carryforward of the credit allowed by this section exceed the tax liability of the taxpayer for the tax year, that portion that exceeds the tax liability shall not be refunded, but may be carried forward to offset tax liability in subsequent tax years.
(3) If the taxpayer disposes of or ceases to use the qualified broadband property to provide service to underserved and rural areas for which a credit was claimed under this section less than five (5) years after the year in which the credit was claimed, the following percentage of the credit amount previously claimed relative to that qualified broadband property shall be added back to the tax liability of the taxpayer in the year that the taxpayer disposed of or ceased to use that qualified broadband property:
(a) if the disposal or cease of use is less than one (1) year after the year in which the credit was claimed, 100%;
(b) if the disposal or cease of use is at least one (1) year but less than two (2) years after the year in which the credit was claimed, 80%;
(c) if the disposal or cease of use is at least two (2) years but less than three (3) years after the year in which the credit was claimed, 60%;
(d) if the disposal or cease of use is at least three (3) years but less than four (4) years after the year in which the credit was claimed, 40%;
(e) if the disposal or cease of use is at least four (4) years but less than five (5) years after the year in which the credit was claimed, 20%; and
(f) if the disposal or cease of use is five (5) years or more after the year in which the credit was claimed, an addback to the taxpayer's tax liability shall not be made.
(4) As used in this section:
(a) "Applicable percentage" means 50% for qualified broadband property that is placed in service in an underserved or rural area where on the effective date of the amendatory act that added this section only 5% of the households have broadband access and 30% for all other underserved or rural areas where more than 5% of households have broadband access on the effective date of the amendatory act that added this section.
(b) "Broadband" means an internet protocol-based transmission service at a speed that is not less than 5 megabits per second downstream and 1 megabit per second upstream that enables users to send and receive voice, video, data, graphics, or a combination thereof without regard to any transmission media or technology.
(c) "Qualified broadband property" means Section 1245 property that is tangible property or computer software used to provide broadband services in underserved or rural areas to purchasers of those broadband services and the original use of that property commences with the taxpayer. Qualified broadband property does not include any property described under Section 50(b) of the Internal Revenue Code.
(d) "Rural area" means any census tract outside a metropolitan statistical area.
(e) "Section 1245 property" means that term as defined under Section 1245 of the Internal Revenue Code.
(f) "Underserved area" means any of the following:
(i) any census tract that is located in an empowerment zone or enterprise community designated under Section 1391 of the Internal Revenue Code.
(ii) any census tract located in a metropolitan statistical area in which the poverty level based on the most recent census data is at least 30% and the median family income does not exceed 70% of the greater of the metropolitan area median family income or the statewide median family income.
(iii) any census tract located in a nonmetropolitan statistical area in which the poverty level based on the most recent census data is at least 30% and the median family income does not exceed 70% of the nonmetropolitan statewide median family income.
SYNOPSIS
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This bill creates a tax credit for furnishing broadband services to underserved and rural areas as defined by the Federal Internal Revenue Code. |
