senate Bill S4523A

Amended

Creates the broadband internet access act of 2014

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 08 / Apr / 2013
    • REFERRED TO INFRASTRUCTURE AND CAPITAL INVESTMENT
  • 11 / Jun / 2013
    • AMEND AND RECOMMIT TO INFRASTRUCTURE AND CAPITAL INVESTMENT
  • 11 / Jun / 2013
    • PRINT NUMBER 4523A
  • 08 / Jan / 2014
    • REFERRED TO INFRASTRUCTURE AND CAPITAL INVESTMENT
  • 03 / Feb / 2014
    • AMEND AND RECOMMIT TO INFRASTRUCTURE AND CAPITAL INVESTMENT
  • 03 / Feb / 2014
    • PRINT NUMBER 4523B

Summary

Creates the broadband internet access act of 2014; provides a tax credit for the delivery of current generation broadband and next generation broadband.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A6923
Versions:
S4523
S4523A
S4523B
Legislative Cycle:
2013-2014
Current Committee:
Senate Infrastructure And Capital Investment
Law Section:
Tax Law
Laws Affected:
Add ยง39, Tax L

Sponsor Memo

BILL NUMBER:S4523A

TITLE OF BILL: An act to amend the tax law, in relation to creating a
tax credit for people who deliver broadband services to a target group
of subscribers; and providing for the repeal of such provisions upon
expiration thereof

PURPOSE OR GENERAL IDEA OF BILL:

This bill establishes the "Broadband Internet Access Act of 2013," to
provide incentives to ensure that all citizens of New York State have
the ability to gain timely and equitable access to the internet over
current and future generations of broadband capability. This
legislation will accelerate deployment of current generation broadband
access for users located in certain low income and rural areas and to
accelerate deployment of next generation broadband.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 establishes the Broadband Internet Access Act of 2013.

Section 2 provides legislative intent. The Legislature recognizes the
vital importance of high-speed communications to the economic
competitiveness of New York State.It is the intent of the Legislature
to encourage extension of broadband accessibility to rural and
underserved areas across New York State.

Section 3 adds a new section 39 to the tax law creating the Broadband
Development Tax Credit to telecommunication providers for qualified
expenses relating to current generation broadband and next generation
broadband,. The current generation broadband tax credit will be equal
to 10% of the qualified expenditures incurred with respect to
qualified equipment of telecommunications provider delivering current
generation broadband services to rural subscribers or underserved
subscribers. The next generation broadband credit will be equal to 20%
of the qualified expenditures providers delivering next generation
broadband services to all underserved subscribers or any other
residential subscriber.

Qualified expenditures with respect to qualified equipment shall be
taken into account with respect. to the first year in which current
generation broadband services are delivered through such equipment to
rural or underserved subscribers, or next generation broadband
services are delivered through such equipment to rural subscribers,
underserved subscribers, or any other residential subscribers. The
delivery of current generation broadband services or next generation
broadband services through qualified equipment occurs when such class
of service is purchased by and provided to at least 10% of all rural
subscribers, underserved subscribers, or any other residential
subscriber.

To determine the current generation broadband credit the qualified
expenditure shall be multiplied by a fraction, the numerator of which
is the sum of the total potential subscriber populations within the
rural area and the underserved areas and the denominator is the total
potential subscriber population of the area the equipment is capable
of serving.


To determine the next generation broadband credit the qualified
expenditures must be multiplied by a fraction equal to the numerator
being the sum of the potential subscriber populations within the rural
areas and underserved areas, plus the total potential subscriber
population of the area consisting only of residential subscribers and
the denominator of which is the total potential subscriber population
of the area which the equipment is capable of serving. The credit will
be available regardless of the technology employed.

The annual fiscal impact of the Broadband Development Tax Credit shall
not exceed $100 million.

Section 4 is the effective date of 90 days after becoming law, to
expire on March 31, 2017.

JUSTIFICATION:

Encouraging rapid development of broadband infrastructure and ensuring
the ubiquitous availability of current. and next generation broadband
capacity, is an urgent. priority of New York State. Increasing the
speed at which New Yorkers can access the Internet, is necessary to
ensure the economic expansion of the state. End users from all parts
of the state - including urban, rural and low income areas should be
afforded a choice and an opportunity to be connected to the highest
technology we have available. Many parts of the State do not have
access to the Internet thus depriving our children and their families
the ability to move forward into the new economy. By encouraging
expansion of the broadband infrastructure in New York State we can
make sure that rural, underserved or low-income residents can have the
same access as everyone in the state. This legislation will ensure the
families and children of this state will not be left behind and will
create equal access to the Internet among all New Yorkers.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

The fiscal impact to the state will not exceed $100 million per year
for four years.

EFFECTIVE DATE:

90 days after enactment, with a sunset date of March 31, 2017.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4523--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 8, 2013
                               ___________

Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
  printed to be committed to the Committee on Infrastructure and Capital
  Investment -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the tax law, in relation to creating a  tax  credit  for
  people  who  deliver broadband services to a target group of subscrib-
  ers; and providing for the repeal of such provisions  upon  expiration
  thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and may be cited as the  "Broadband
Internet Access Act of 2013".
  S  2. Legislative intent.  The telecommunications revolution is trans-
forming virtually every  aspect  of  American  life.  Encouraging  rapid
development  of  broadband  infrastructure,  and ensuring the ubiquitous
availability of current and next generation broadband  capacity,  is  an
urgent priority of the legislature. Increasing the speed at which Ameri-
cans  can access the internet is necessary to ensure the economic expan-
sion of the state of New York. End users from all parts  of  the  state,
including urban, rural and low income areas, should be afforded a choice
among  carriers,  high-speed  access  to  a wide array of audio and data
applications, and the opportunity to take  advantage  of  the  prospects
created  by the deployment and use of current and next generation broad-
band facilities.  Accordingly, it is appropriate for the legislature  to
take  action to accelerate the deployment of current and next generation
broadband capability in the state of New York.
  S 3. The tax law is amended by adding a new  section  39  to  read  as
follows:
  S  39. BROADBAND DEVELOPMENT TAX CREDIT.  (A) A PROVIDER OF TELECOMMU-
NICATIONS SERVICES, WHO IS SUBJECT TO TAXATION  UNDER  ARTICLE  NINE  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09969-04-3

S. 4523--A                          2

THIS  CHAPTER,  SHALL  BE  ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY
SUCH ARTICLE. SUCH CREDIT SHALL BE DETERMINED AS FOLLOWS:
  (1)  A PROVIDER SHALL BE ALLOWED A CURRENT GENERATION BROADBAND CREDIT
EQUAL TO TEN PERCENT OF THE QUALIFIED EXPENDITURES INCURRED WITH RESPECT
TO QUALIFIED  EQUIPMENT  OF  A  TELECOMMUNICATIONS  PROVIDER  DELIVERING
CURRENT  GENERATION  BROADBAND  SERVICES  TO RURAL SUBSCRIBERS OR UNDER-
SERVED SUBSCRIBERS.  SUCH CREDIT SHALL ONLY APPLY TO THAT  PART  OF  THE
SERVICE BUILT:
  (A) FROM THE NODE TO THE HOME;
  (B) FROM THE "POINT OF PRESENCE" TO THE HOME; OR
  (C) FROM THE CENTRAL OFFICE TO THE HOME.
  (2)  A  PROVIDER  SHALL  BE ALLOWED A NEXT GENERATION BROADBAND CREDIT
EQUAL TO TWENTY PERCENT OF  THE  QUALIFIED  EXPENDITURES  INCURRED  WITH
RESPECT TO QUALIFIED EQUIPMENT OF A TELECOMMUNICATIONS PROVIDER DELIVER-
ING NEXT GENERATION BROADBAND SERVICES TO RURAL SUBSCRIBERS, UNDERSERVED
SUBSCRIBERS,  OR  ANY  RESIDENTIAL  SUBSCRIBER.   SUCH CREDIT SHALL ONLY
APPLY TO THAT SERVICE BUILT:
  (A) FROM THE NODE TO THE HOME;
  (B) FROM THE "POINT OF PRESENCE" TO THE HOME; OR
  (C) FROM THE CENTRAL OFFICE TO THE HOME.
  (B)(1) A TELECOMMUNICATIONS SERVICES PROVIDER SHALL BE ALLOWED TO TAKE
THE CREDIT PROVIDED FOR IN SUBDIVISION (A) OF THIS SECTION IN THE  FIRST
TAXABLE YEAR IN WHICH:
  (A)  CURRENT  GENERATION BROADBAND SERVICES ARE DELIVERED THROUGH SUCH
EQUIPMENT TO RURAL SUBSCRIBERS OR UNDERSERVED SUBSCRIBERS; OR
  (B) NEXT GENERATION BROADBAND  SERVICES  ARE  DELIVERED  THROUGH  SUCH
EQUIPMENT  TO  RURAL  SUBSCRIBERS, UNDERSERVED SUBSCRIBERS, OR ANY OTHER
RESIDENTIAL SUBSCRIBERS.
  (2) FOR PURPOSES OF THIS SUBDIVISION, THE DELIVERY OF  CURRENT  GENER-
ATION  BROADBAND  SERVICES OR NEXT GENERATION BROADBAND SERVICES THROUGH
QUALIFIED EQUIPMENT OCCURS WHEN SUCH CLASS OF SERVICE  IS  PURCHASED  BY
AND  PROVIDED  TO  AT  LEAST TEN PERCENT OF THE SUBSCRIBERS DESCRIBED IN
THIS SUBDIVISION, WHERE  SUCH  EQUIPMENT  IS  CAPABLE  OF  SERVING  SUCH
SUBSCRIBERS THROUGH THE LEGAL OR CONTRACTUAL AREA ACCESS RIGHTS OR OBLI-
GATIONS OF THE PROVIDER.
  (C)(1)  FOR  PURPOSES  OF DETERMINING THE CURRENT GENERATION BROADBAND
CREDIT UNDER SUBDIVISION (A) OF THIS SECTION WITH RESPECT  TO  QUALIFIED
EQUIPMENT THROUGH WHICH CURRENT GENERATION BROADBAND SERVICES ARE DELIV-
ERED,  IF  THE  QUALIFIED  EQUIPMENT  IS  CAPABLE  OF  SERVING  BOTH THE
SUBSCRIBERS DESCRIBED UNDER PARAGRAPH ONE OF  SUBDIVISION  (A)  OF  THIS
SECTION  AND  OTHER  SUBSCRIBERS,  THE  QUALIFIED  EXPENDITURES SHALL BE
MULTIPLIED BY A FRACTION:
  (A) THE NUMERATOR OF WHICH IS THE SUM OF THE TOTAL POTENTIAL SUBSCRIB-
ER POPULATIONS WITHIN THE RURAL AREAS AND THE UNDERSERVED AREAS THAT THE
EQUIPMENT IS  CAPABLE  OF  SERVING  WITH  CURRENT  GENERATION  BROADBAND
SERVICES; AND
  (B)  THE  DENOMINATOR OF WHICH IS THE TOTAL POTENTIAL SUBSCRIBER POPU-
LATION OF THE AREA THAT THE EQUIPMENT IS CAPABLE OF SERVING WITH CURRENT
GENERATION BROADBAND SERVICES.
  (2) FOR PURPOSES OF DETERMINING THE NEXT GENERATION  BROADBAND  CREDIT
UNDER  SUBDIVISION  (A) OF THIS SECTION WITH RESPECT TO QUALIFIED EQUIP-
MENT THROUGH WHICH NEXT GENERATION BROADBAND SERVICES ARE DELIVERED,  IF
THE  QUALIFIED  EQUIPMENT  IS  CAPABLE  OF  SERVING BOTH THE SUBSCRIBERS
DESCRIBED UNDER PARAGRAPH TWO OF SUBDIVISION (A)  OF  THIS  SECTION  AND
OTHER  SUBSCRIBERS,  THE QUALIFIED EXPENDITURES SHALL BE MULTIPLIED BY A
FRACTION:

S. 4523--A                          3

  (A) THE NUMERATOR OF WHICH IS THE SUM  OF:  (I)  THE  TOTAL  POTENTIAL
SUBSCRIBER  POPULATIONS WITHIN THE RURAL AREAS AND THE UNDERSERVED AREAS
THAT THE EQUIPMENT IS CAPABLE OF SERVING WITH NEXT GENERATION  BROADBAND
SERVICES  AND (II) THE TOTAL POTENTIAL SUBSCRIBER POPULATION OF THE AREA
CONSISTING  ONLY  OF RESIDENTIAL SUBSCRIBERS NOT DESCRIBED IN CLAUSE (I)
OF THIS SUBPARAGRAPH THAT THE EQUIPMENT IS CAPABLE OF SERVING WITH  NEXT
GENERATION BROADBAND SERVICES; AND
  (B)  THE  DENOMINATOR OF WHICH IS THE TOTAL POTENTIAL SUBSCRIBER POPU-
LATION OF THE AREA THAT THE EQUIPMENT IS CAPABLE OF  SERVING  WITH  NEXT
GENERATION BROADBAND SERVICES.
  (D)  FOR  PURPOSES OF THIS SECTION, THE FOLLOWING WORDS SHALL HAVE THE
FOLLOWING MEANINGS:
  (1) "CURRENT GENERATION BROADBAND SERVICE" SHALL MEAN THE TRANSMISSION
OF SIGNALS AT A RATE OF AT LEAST TEN MILLION  BITS  PER  SECOND  TO  THE
SUBSCRIBER AND AT LEAST ONE MILLION BITS PER SECOND FROM THE SUBSCRIBER.
  (2) "NEXT GENERATION BROADBAND SERVICE" SHALL MEAN THE TRANSMISSION OF
SIGNALS  AT  A  RATE  OF  AT LEAST TWENTY MILLION BITS PER SECOND TO THE
SUBSCRIBER AND AT LEAST FIVE MILLION BITS PER SECOND FROM THE  SUBSCRIB-
ER.
  (3)  "NONRESIDENTIAL  SUBSCRIBER"  SHALL  MEAN  A PERSON WHO PURCHASES
BROADBAND SERVICES WHICH ARE DELIVERED TO THE PERMANENT PLACE  OF  BUSI-
NESS OF SUCH PERSON.
  (4) "PERSON" SHALL MEAN AN INDIVIDUAL, CORPORATION, PARTNERSHIP, ASSO-
CIATION, GOVERNMENTAL ENTITY, OR ANY OTHER LEGAL ENTITY.
  (5)  "QUALIFIED  EQUIPMENT" SHALL MEAN THE EQUIPMENT OF A TELECOMMUNI-
CATIONS PROVIDER THAT IS CAPABLE OF PROVIDING CURRENT GENERATION  BROAD-
BAND  SERVICES  OR  NEXT  GENERATION BROADBAND SERVICES AT ANY TIME, AND
WITHOUT REGARD TO ANY PARTICULAR TRANSMISSION MEDIUM OR  TECHNOLOGY,  TO
EACH SUBSCRIBER WHO IS UTILIZING SUCH SERVICES.
  (6)  "QUALIFIED EXPENDITURE" SHALL MEAN ANY AMOUNT CHARGEABLE TO CAPI-
TAL ACCOUNT WITH RESPECT TO THE PURCHASE AND INSTALLATION  OF  QUALIFIED
EQUIPMENT (INCLUDING ANY UPGRADES THERETO).
  (7)  "RESIDENTIAL  SUBSCRIBER"  SHALL MEAN AN INDIVIDUAL WHO PURCHASES
BROADBAND SERVICES WHICH ARE DELIVERED TO SUCH INDIVIDUAL'S DWELLING.
  (8) "RURAL AREA" SHALL MEAN ANY CENSUS TRACT WHICH:
  (A) IS NOT WITHIN TEN MILES OF ANY INCORPORATED OR  CENSUS  DESIGNATED
PLACE CONTAINING MORE THAN SEVENTY THOUSAND PEOPLE, AND
  (B)  IS  NOT WITHIN A COUNTY OR COUNTY EQUIVALENT WHICH HAS AN OVERALL
POPULATION DENSITY OF MORE THAN EIGHT HUNDRED PEOPLE PER SQUARE MILE  OF
LAND.
  (9) "RURAL SUBSCRIBER" SHALL MEAN A RESIDENTIAL SUBSCRIBER RESIDING IN
A  DWELLING  LOCATED  IN A RURAL AREA OR NONRESIDENTIAL SUBSCRIBER MAIN-
TAINING A PERMANENT PLACE OF BUSINESS LOCATED IN A RURAL AREA.
  (10) "SUBSCRIBER" SHALL  MEAN  A  PERSON  WHO  PURCHASES  OR  RECEIVES
CURRENT  GENERATION  BROADBAND  SERVICES  OR  NEXT  GENERATION BROADBAND
SERVICES.
  (11) "TELECOMMUNICATIONS PROVIDER" OR "PROVIDER" SHALL MEAN A  PERSON,
OR AN AFFILIATE OF SUCH PERSON, EITHER OF WHICH FOR COMPENSATION DEPLOYS
FACILITIES  USED DIRECTLY OR INDIRECTLY IN THE PROVISIONS OF INTRASTATE,
INTERSTATE OR INTERNATIONAL  TELECOMMUNICATIONS,  WHETHER  ON  A  COMMON
CARRIAGE, PRIVATE CARRIAGE, WHOLESALE, OR RETAIL BASIS.
  (12)  "TOTAL POTENTIAL SUBSCRIBER POPULATION" SHALL MEAN, WITH RESPECT
TO ANY AREA AND BASED ON THE MOST RECENT CENSUS DATA, THE  TOTAL  NUMBER
OF  POTENTIAL  RESIDENTIAL  SUBSCRIBERS RESIDING IN DWELLINGS LOCATED IN
SUCH AREA AND POTENTIAL NONRESIDENTIAL SUBSCRIBERS MAINTAINING PERMANENT
PLACES OF BUSINESS LOCATED IN SUCH AREA.

S. 4523--A                          4

  (13) "UNDERSERVED AREA" SHALL MEAN ANY CENSUS TRACT WHICH  IS  LOCATED
IN:
  (A)  AN  EMPOWERMENT  ZONE  OR  ENTERPRISE  COMMUNITY DESIGNATED UNDER
SECTION 1391 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986;
  (B) A RENEWAL COMMUNITY DESIGNATED UNDER SECTION 1400E OF  THE  UNITED
STATES INTERNAL REVENUE CODE OF 1986; OR
  (C)  A LOW-INCOME COMMUNITY DESIGNATED UNDER SECTION 45D OF THE UNITED
STATES INTERNAL REVENUE CODE OF 1986.
  (14) "UNDERSERVED SUBSCRIBER"  SHALL  MEAN  A  RESIDENTIAL  SUBSCRIBER
RESIDING  IN A DWELLING LOCATED IN AN UNDERSERVED AREA OR NONRESIDENTIAL
SUBSCRIBER MAINTAINING A PERMANENT  PLACE  OF  BUSINESS  LOCATED  IN  AN
UNDERSERVED AREA.
  (15)  "NODE"  SHALL  MEAN  THE  CABINET AND EQUIPMENT, INCLUDING POWER
SUPPLY, FANS,  GAS  GENERATORS,  BATTERIES  AND  OPTICAL  TO  ELECTRICAL
CONVERTERS,  LOCATED IN THE NEIGHBORHOODS WHICH SERVE HOMES, BUSINESSES,
AND INSTITUTIONS, AND WHICH IS THE  POINT  WHERE  FIBER  FACILITIES  AND
COAXIAL FACILITIES ARE CONNECTED.
  (16)  "POINT  OF  PRESENCE"  SHALL MEAN THE SPECIFIC LOCATION WITHIN A
LOCAL ACCESS TRANSPORT AREA WHERE A CONNECTION TO  THE  INTERNET  TERMI-
NATES  AND/OR  ORIGINATES ITS SERVICE, AND SUCH PHYSICAL LOCATION HOUSES
SERVERS, ROUTERS, ATM SWITCHES, AND OTHER DEVICES BY  WHICH  A  COMMUNI-
CATIONS CARRIER ALLOWS OTHER CARRIERS TO ACCESS ITS NETWORK.
  (17)  "CENTRAL  OFFICE"  SHALL  MEAN  AN OFFICE IN A LOCALITY TO WHICH
SUBSCRIBER HOME AND BUSINESS LINES ARE CONNECTED ON  WHAT  IS  CALLED  A
LOCAL LOOP, CONTAINING SWITCHING EQUIPMENT THAT CAN SWITCH CALLS LOCALLY
OR TO LONG-DISTANCE CARRIER PHONE OFFICES.
  (E)  THE  TOTAL  FISCAL  IMPACT OF THE RURAL BROADBAND DEVELOPMENT TAX
CREDIT SHALL NOT EXCEED ONE HUNDRED MILLION DOLLARS EACH YEAR.
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law  and  shall expire and be deemed repealed March 31,
2017.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.