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US HR2870

Gigabit Opportunity Act


summary

Introduced
06/12/2017
In Committee
06/16/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Gigabit Opportunity Act This bill amends the Internal Revenue Code to authorize the designation of qualified gigabit opportunity zones in low-income communities and to provide tax incentives for investments in the zones. Governors may submit nominations for a limited number of qualified gigabit opportunity zones in low-income communities to the Department of the Treasury for certification and designation. Governors must give particular consideration to areas that: are facing obstacles to economic development due to a lack of geographic broadband coverage or speed; are the focus of mutually reinforcing state, local, or private economic development initiatives; are poised for economic growth that requires access to high speed broadband for commercial purposes; and represent the areas of a state where such service would result in the highest return on investment. For eligible taxpayers that sell certain broadband services, the bill allows: (1) deferrals, reductions, or exemptions from taxes on capital gains invested in certain property used to provide broadband services in a zone (depending on how long the property is held), and (2) immediate expensing of the costs of the property. The bill also allows tax-exempt private activity bonds to be used for certain broadband projects in the zones. Within one year of enactment of this bill, the Federal Communications Commission must publish a Uniform Model Broadband Deployment Act containing laws for the state regulation of the deployment of broadband services. Qualified zones must adopt either the Act or laws comparable to the Act.

AI Summary

This bill, the Gigabit Opportunity Act, aims to spur investment in high-speed broadband infrastructure in low-income communities. It allows governors to designate certain areas as "qualified gigabit opportunity zones" that are eligible for tax incentives, such as deferral or exemption of capital gains taxes on investments in broadband-related property held for a certain period of time. The bill also allows the use of tax-exempt private activity bonds for qualified broadband projects in these zones. Additionally, it requires the Federal Communications Commission to publish a Uniform Model Broadband Deployment Act to guide state regulation of broadband deployment.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (12)

Last Action

Referred to the Subcommittee on Communications and Technology. (on 06/16/2017)

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