DE HB316

Creates a tax credit for taxpayers furnishing broadband services to underserved and rural areas for tax years beginning after December 31, 2012.

Credit equals 50% of qualified broadband property costs in areas with only 5% household broadband access on the effective date, and 30% for areas with more than 5% access.

Unused credits may be carried forward to offset tax liability in subsequent years but are not refundable.

If qualified broadband property is disposed of or ceases service within five years, a percentage of previously claimed credits must be added back to tax liability, ranging from 100% (within one year) to 20% (4-5 years), with no addback after five years.

Defines "broadband" as internet service with minimum speeds of 5 megabits per second downstream and 1 megabit per second upstream, and "qualified broadband property" as tangible Section 1245 property or computer software used to provide such services.