The New York State Senate

                    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.