S T A T E O F N E W Y O R K
________________________________________________________________________
1109--A
2015-2016 Regular Sessions
I N A S S E M B L Y
January 8, 2015
___________
Introduced by M. of A. MAGEE, GUNTHER, RUSSELL, MORELLE, McDONALD,
BARRETT, STIRPE, PALMESANO, SANTABARBARA, BRONSON, GANTT, STEC, FAHY,
CAHILL, QUART, SKOUFIS -- Multi-Sponsored by -- M. of A. LUPARDO,
ROBINSON -- read once and referred to the Committee on Governmental
Operations -- recommitted to the Committee on Governmental Operations
in accordance with Assembly Rule 3, sec. 2 -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the state technology law and the tax law, in relation to
a refundable tax credit provided to broadband deployment to residences
and small businesses located in rural, unserved areas
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 "credit for
rural broadband act of 2016".
S 2. Section 104 of the state technology law is amended by adding a
new subdivision 3 to read as follows:
3. THE OFFICE OF INFORMATION TECHNOLOGY SERVICES, IN CONJUNCTION WITH
INPUT FROM THE ADVISORY COUNCIL, IS HEREBY AUTHORIZED AND DIRECTED TO
PROMULGATE RULES AND REGULATIONS NECESSARY FOR VERIFYING AN "UNSERVED"
AREA UNDER THE CREDIT FOR RURAL BROADBAND ACT OF TWO THOUSAND SIXTEEN,
USING BROADBAND MAPPING DATA AT THE TIME A PROJECT IS PROPOSED.
S 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. CREDIT FOR RURAL BROADBAND DEPLOYMENT. (A) ALLOWANCE OF CREDIT.
A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
CONSTRUCTION RESULTING FROM NEW NETWORK CONSTRUCTION TO DELIVER BROAD-
BAND SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS LOCATED
IN AN UNSERVED AREA. THE CREDIT ALLOWED BY THIS SUBDIVISION SHALL BE
CLAIMED ANNUALLY OVER A FIVE-YEAR PERIOD EQUAL TO ONE-FIFTH OF THE CRED-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02115-03-6
A. 1109--A 2
IT AMOUNT. IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION IS GREATER THAN
THE TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS
SUCH TAX DUE IS TREATED AS AN OVERPAYMENT OF TAX TO BE REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER.
(B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
(1) "QUALIFIED CONSTRUCTION EXPENSES" EQUAL THE TOTAL COST OF
CONSTRUCTION OF NEW NETWORKS IN THE PROPOSED UNSERVED SERVICE AREA, AS
CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED A REASON-
ABLE COST BASED UPON THE AVERAGE COST PER MILE OF BROADBAND NETWORK
CONSTRUCTION AS DETERMINED BY THE COMMISSIONER IN CONSULTATION WITH THE
PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS.
(2) "QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION" IS DETER-
MINED IN ACCORDANCE WITH THE FOLLOWING FORMULA: (QCE/TC) - (ACM/35) =
QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS THE
AVERAGE COST OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED SERVICE
AREA, AS CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED
A REASONABLE COST BASED UPON THE AVERAGE COST PER MILE OF BROADBAND
NETWORK CONSTRUCTION AS DETERMINED BY THE COMMISSIONER IN CONSULTATION
WITH THE PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS; TC
EQUALS THE NUMBER OF RESIDENTS AND SMALL BUSINESS CUSTOMERS IN THE
PROPOSED UNSERVED SERVICE AREA MAKING A QUALIFIED CUSTOMER CONTRIBUTION
IN AID TO CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE NETWORK;
AND QC EQUALS THE QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
CONSTRUCTION.
(3) "REQUIRED PROVIDER CONTRIBUTION IN AID TO CONSTRUCTION" SHALL
EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
IFIED CUSTOMER CONTRIBUTIONS IN AID TO CONSTRUCTION IN THE PROPOSED
UNSERVED SERVICE AREA.
(4) "BROADBAND SERVICE" MEANS INTERNET ACCESS SERVICE WITH TRANS-
MISSION SPEEDS THAT ARE EQUAL TO OR GREATER THAN COMBINED ADVERTISED
DOWNLOAD SPEEDS OF AT LEAST 4 MEGABITS PER SECOND (MBPS) AND UPLOAD
SPEEDS OF AT LEAST 1 MBPS PER SECOND OVER THE PROVIDER'S NETWORK.
(5) "UNSERVED AREA" MEANS AN AREA COMPOSED OF ONE OR MORE CONTIGUOUS
CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
FACILITIES-BASED TERRESTRIAL BROADBAND SERVICE. A HOUSEHOLD HAS ACCESS
TO A BROADBAND SERVICE IF THE HOUSEHOLD CAN READILY SUBSCRIBE TO THAT
SERVICE UPON REQUEST.
(6) "QUALIFIED TAXPAYER" MEANS A TAXPAYER WHICH IS A SMALL BUSINESS
CORPORATION AS DEFINED IN PARAGRAPH THREE OF SUBSECTION (C) OF SECTION
TWELVE HUNDRED FORTY-FOUR OF THE INTERNAL REVENUE CODE (WITHOUT REGARD
TO THE SECOND SENTENCE OF SUBPARAGRAPH (A) THEREOF) AS OF THE LAST DAY
OF THE TAXABLE YEAR.
S 4. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) CREDIT FOR RURAL BROADBAND DEPLOYMENT. (A) ALLOWANCE OF CREDIT.
A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED
BY THIS ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
CONSTRUCTION RESULTING FROM NEW NETWORK CONSTRUCTION TO DELIVER BROAD-
BAND SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS LOCATED
IN AN UNSERVED AREA. THE CREDIT ALLOWED BY THIS SUBSECTION SHALL BE
CLAIMED ANNUALLY OVER A FIVE-YEAR PERIOD EQUAL TO ONE-FIFTH OF THE CRED-
IT AMOUNT. IF THE CREDIT ALLOWED UNDER THIS SUBSECTION IS GREATER THAN
THE TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS
SUCH TAX DUE IS TREATED AS AN OVERPAYMENT OF TAX TO BE REFUNDED IN
A. 1109--A 3
ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER.
(B) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
(1) "QUALIFIED CONSTRUCTION EXPENSES" EQUAL THE TOTAL COST OF
CONSTRUCTION OF NEW NETWORKS IN THE PROPOSED UNSERVED SERVICE AREA, AS
CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED A REASON-
ABLE COST BASED UPON THE AVERAGE COST PER MILE OF BROADBAND NETWORK
CONSTRUCTION AS DETERMINED BY THE COMMISSIONER IN CONSULTATION WITH THE
PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS.
(2) "QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION" IS DETER-
MINED IN ACCORDANCE WITH THE FOLLOWING FORMULA: (QCE/TC) - (ACM/35) =
QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS THE
AVERAGE COST OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED SERVICE
AREA, AS CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED
A REASONABLE COST BASED UPON THE AVERAGE COST PER MILE OF BROADBAND
NETWORK CONSTRUCTION AS DETERMINED BY THE COMMISSIONER IN CONSULTATION
WITH THE PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS; TC
EQUALS THE NUMBER OF RESIDENTS AND SMALL BUSINESS CUSTOMERS IN THE
PROPOSED UNSERVED SERVICE AREA MAKING A QUALIFIED CUSTOMER CONTRIBUTION
IN AID TO CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE NETWORK;
AND QC EQUALS THE QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
CONSTRUCTION.
(3) "REQUIRED PROVIDER CONTRIBUTION IN AID TO CONSTRUCTION" SHALL
EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
IFIED CUSTOMER CONTRIBUTIONS IN AID TO CONSTRUCTION IN THE PROPOSED
UNSERVED SERVICE AREA.
(4) "BROADBAND SERVICE" MEANS INTERNET ACCESS SERVICE WITH TRANS-
MISSION SPEEDS THAT ARE EQUAL TO OR GREATER THAN COMBINED ADVERTISED
DOWNLOAD SPEEDS OF AT LEAST 4 MEGABITS PER SECOND (MBPS) AND UPLOAD
SPEEDS OF AT LEAST 1 MBPS PER SECOND OVER THE PROVIDER'S NETWORK.
(5) "UNSERVED AREA" MEANS AN AREA COMPOSED OF ONE OR MORE CONTIGUOUS
CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
FACILITIES-BASED TERRESTRIAL BROADBAND SERVICE. A HOUSEHOLD HAS ACCESS
TO A BROADBAND SERVICE IF THE HOUSEHOLD CAN READILY SUBSCRIBE TO THAT
SERVICE UPON REQUEST.
(6) "QUALIFIED TAXPAYER" MEANS ANY INDIVIDUAL WITH NEW YORK ADJUSTED
GROSS INCOME OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS.
S 5. This act shall take effect immediately and shall apply to tax
years beginning on or after January 1, 2017.