HB 1644 Summary

• Increases the broadband equipment speed threshold from 384 kilobits per second to 35 megabits per second downlink and 3 megabits per second uplink for mobile broadband, or capable of providing fixed broadband service as defined in Section 77-19-3

• Extends the income tax and corporation franchise tax credit eligibility period for telecommunications enterprises from through July 1, 2025 to through July 1, 2030

• Establishes an annual aggregate cap of $15,000,000 on broadband equipment tax credits, with a $1,500,000 limit per telecommunications enterprise, to be allocated on a prorated basis if total requests exceed the cap

• Prohibits tax credits if equipment was funded through the Coronavirus Aid, Relief, and Economic Security (CARES) Act or the Broadband Equity, Access, and Deployment (BEAD) Program

• Creates separate ad valorem tax exemptions for fixed broadband equipment (10 years) and mobile broadband equipment (5 years) placed in service after June 30, 2025 and before July 1, 2030, requiring taxpayers to submit certified descriptions to county tax assessors by April 1 of the first assessment year