S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4869
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced  by  M.  of  A.  MAGEE,  GUNTHER,  JENNE,  MORELLE, McDONALD,
   BARRETT, STIRPE, PALMESANO, SANTABARBARA, BRONSON, GANTT, STEC,  FAHY,
   CAHILL,  QUART,  SKOUFIS  -- Multi-Sponsored by -- M. of A. LUPARDO --
   read once and referred to the Committee on Governmental Operations
 
 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 2017".
   §  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 SEVENTEEN,
 USING BROADBAND MAPPING DATA AT THE TIME A PROJECT IS PROPOSED.
   §  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-
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08600-01-7
              

 A. 4869                             2
 
 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.
   § 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
 ACCORDANCE WITH THE PROVISIONS OF SECTION  ONE  THOUSAND  EIGHTY-SIX  OF
 THIS CHAPTER.

 A. 4869                             3
 
   (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.
   § 5. This act shall take effect immediately and  shall  apply  to  tax
 years beginning on or after January 1, 2018.