S T A T E O F N E W Y O R K
________________________________________________________________________
4786
2009-2010 Regular Sessions
I N A S S E M B L Y
February 6, 2009
___________
Introduced by M. of A. MORELLE, ORTIZ, SCHIMMINGER, V. LOPEZ, ESPAILLAT
-- Multi-Sponsored by -- M. of A. CAHILL, COOK, DelMONTE, DESTITO,
HEASTIE, MAGEE -- read once and referred to the Committee on Ways and
Means
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
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 2009".
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 30 to read as
follows:
S 30. BROADBAND CREDIT. (A) A PROVIDER OF TELECOMMUNICATIONS
SERVICES, WHO IS SUBJECT TO TAXATION UNDER ARTICLE NINE OF THIS CHAPTER,
SHALL BE ALLOWED A CREDIT AGAINST THE TAXES IMPOSED BY SUCH ARTICLE.
SUCH CREDIT SHALL BE DETERMINED AS FOLLOWS:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08313-01-9
A. 4786 2
(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.
(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.
(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:
(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.
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(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 ONE MILLION BITS PER SECOND TO THE
SUBSCRIBER AND AT LEAST ONE HUNDRED EIGHTY THOUSAND BITS PER SECOND FROM
THE SUBSCRIBER.
(2) "NEXT GENERATION BROADBAND SERVICE" SHALL MEAN THE TRANSMISSION OF
SIGNALS AT A RATE OF AT LEAST TWENTY-TWO 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 TWENTY-FIVE THOUSAND PEOPLE, AND
(B) IS NOT WITHIN A COUNTY OR COUNTY EQUIVALENT WHICH HAS AN OVERALL
POPULATION DENSITY OF MORE THAN FIVE 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.
(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.
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(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.
S 4. This act shall take effect on the ninetieth day after it shall
have become a law.