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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 216 as follows: | ||||||||||||||||||||||||
6 | (35 ILCS 5/216 new) | ||||||||||||||||||||||||
7 | Sec. 216. Broadband Internet access tax credit. | ||||||||||||||||||||||||
8 | (a) As used in this Section: | ||||||||||||||||||||||||
9 | "Current generation broadband service" means the | ||||||||||||||||||||||||
10 | transmission of signals at a rate of at least 1,500,000 bits | ||||||||||||||||||||||||
11 | per second to the subscriber and at least 200,000 bits per | ||||||||||||||||||||||||
12 | second from the subscriber. | ||||||||||||||||||||||||
13 | "Next generation broadband service" means the transmission | ||||||||||||||||||||||||
14 | of signals at a rate of at least 22,000,000 bits per second to | ||||||||||||||||||||||||
15 | the subscriber and at least 10,000,000 bits per second from the | ||||||||||||||||||||||||
16 | subscriber. | ||||||||||||||||||||||||
17 | "Nonresidential subscriber" means a person or entity that | ||||||||||||||||||||||||
18 | purchases broadband services that are delivered to the | ||||||||||||||||||||||||
19 | permanent place of business of such person or entity. | ||||||||||||||||||||||||
20 | "Qualified equipment" means equipment capable of providing | ||||||||||||||||||||||||
21 | current generation broadband services or next generation | ||||||||||||||||||||||||
22 | broadband services at any time to each subscriber who is | ||||||||||||||||||||||||
23 | utilizing such services. | ||||||||||||||||||||||||
24 | "Qualified expenditure" means any amount chargeable to | ||||||||||||||||||||||||
25 | capital account with respect to the purchase and installation | ||||||||||||||||||||||||
26 | of qualified equipment, including any upgrades thereto, for | ||||||||||||||||||||||||
27 | which depreciation is allowable under Section 168 of the | ||||||||||||||||||||||||
28 | Internal Revenue Code. | ||||||||||||||||||||||||
29 | "Residential subscriber" means an individual who purchases | ||||||||||||||||||||||||
30 | broadband services that are delivered to that individual's | ||||||||||||||||||||||||
31 | dwelling. | ||||||||||||||||||||||||
32 | "Rural subscriber" means a residential subscriber residing |
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1 | in a dwelling located in a rural area or nonresidential | ||||||
2 | subscriber maintaining a permanent place of business located in | ||||||
3 | a rural area. | ||||||
4 | "Rural area" means any census tract that (i) is not within | ||||||
5 | 10 miles of any incorporated or census designated place | ||||||
6 | containing more than 25,000 people, and (ii) is not within a | ||||||
7 | county or county equivalent that has an overall population | ||||||
8 | density of more than 500 people per square mile of land. | ||||||
9 | "Subscriber" means a person who purchases current | ||||||
10 | generation broadband services or next generation broadband | ||||||
11 | services. | ||||||
12 | "Underserved subscriber" means a residential subscriber | ||||||
13 | residing in a dwelling located in an underserved area or | ||||||
14 | nonresidential subscriber maintaining a permanent place of | ||||||
15 | business located in an underserved area.
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16 | "Underserved area" means any census tract (i) the poverty | ||||||
17 | level of which is at least 30% based on the most recent census | ||||||
18 | data, (ii) the median family income of which does not exceed | ||||||
19 | (a) in the case of a census tract located in a metropolitan | ||||||
20 | statistical area, 70% of the greater of the metropolitan area | ||||||
21 | median family income or the statewide median family income, and | ||||||
22 | (b) in the case of a census tract located in a nonmetropolitan | ||||||
23 | statistical area, 70% of the nonmetropolitan statewide median | ||||||
24 | family income. | ||||||
25 | (b) For taxable years beginning on or after January 1, 2004 | ||||||
26 | but before January 1, 2009, a taxpayer shall be allowed a | ||||||
27 | credit against the taxes imposed by subsections (a) and (b) of | ||||||
28 | Section 201 as set forth in this Section for the purpose of | ||||||
29 | accelerating deployment of (i) current generation broadband | ||||||
30 | access to the Internet for users located in certain low income | ||||||
31 | and rural areas and (ii) next generation broadband access for | ||||||
32 | all Illinoisans. The tax credit for any taxable year shall | ||||||
33 | equal the sum of (a) the current generation broadband credit, | ||||||
34 | plus (b) the next generation broadband credit. | ||||||
35 | (c) For purposes of this Section, the current generation | ||||||
36 | broadband credit for any taxable year shall equal 10% of the |
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1 | qualified expenditures incurred with respect to qualified | ||||||
2 | equipment offering current generation broadband services to | ||||||
3 | rural subscribers or underserved subscribers and taken into | ||||||
4 | account with respect to such taxable year. The next generation | ||||||
5 | broadband credit for any taxable year shall equal 20% of the | ||||||
6 | qualified expenditures incurred with respect to qualified | ||||||
7 | equipment offering next generation broadband services to all | ||||||
8 | rural subscribers, all underserved subscribers, or any other | ||||||
9 | residential subscribers and taken into account with respect to | ||||||
10 | such taxable year. | ||||||
11 | (d) For purposes of this Section, the offer of current | ||||||
12 | generation broadband services or next generation broadband | ||||||
13 | services through qualified equipment occurs when such class of | ||||||
14 | service is purchased by and provided to at least 10% of the | ||||||
15 | subscribers described in subsection (c) that such equipment is | ||||||
16 | capable of serving through the legal or contractual area access | ||||||
17 | rights or obligations of the taxpayer. | ||||||
18 | (e) The total credit allowed under this Section for all | ||||||
19 | taxpayers in any taxable year shall not exceed $750,000. If the | ||||||
20 | amount of credits otherwise allowable under this Section exceed | ||||||
21 | the $750,000 limit for any taxable year, such credits shall be | ||||||
22 | allocated to taxpayers on a pro rata basis by the Department of | ||||||
23 | Revenue. | ||||||
24 | (f) The amount of any credit attributable to a partnership, | ||||||
25 | electing small business corporation (S corporation), or | ||||||
26 | limited liability company shall be allocated to the individual | ||||||
27 | partners, shareholders, or members, respectively, in | ||||||
28 | proportion to their ownership or interest in such business | ||||||
29 | entities. | ||||||
30 | (g) If the amount of the credit exceeds the tax liability | ||||||
31 | for the year, the excess may not be carried forward or back to | ||||||
32 | apply to the tax liability of any other taxable year.
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33 | Section 99. Effective date. This Act takes effect upon | ||||||
34 | becoming law.
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