S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2048
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2017
                                ___________
 
 Introduced  by  M.  of  A.  SKARTADOS  --  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 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 2017".
   §  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.
   § 3. The tax law is amended by adding a new  section  43  to  read  as
 follows:
   §  43. BROADBAND DEVELOPMENT TAX CREDIT.  (A) A PROVIDER OF TELECOMMU-
 NICATIONS 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.
                                                            LBD01644-01-7
              

 A. 2048                             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.    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:
   (A)  THE  NUMERATOR  OF  WHICH  IS THE SUM OF: (I) THE TOTAL POTENTIAL
 SUBSCRIBER POPULATIONS WITHIN THE RURAL AREAS AND THE UNDERSERVED  AREAS

 A. 2048                             3
 
 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.
   (13)  "UNDERSERVED  AREA" SHALL MEAN ANY CENSUS TRACT WHICH IS LOCATED
 IN:

 A. 2048                             4
 
   (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.
   §  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,
 2021.