NY State Senate Bill 2023-S4554

Current Bill Status - In Senate Committee Internet And Technology Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to internet and technology
Feb 10, 2023	referred to internet and technology

co-Sponsors

2023-S4554 (ACTIVE) - Details

Current Committee:: Senate Internet And Technology
Law Section:: State Technology Law
Laws Affected:: Amd §104, St Tech L; amd §§210-B & 606, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S5625

2023-S4554 (ACTIVE) - Summary

Provides for a refundable tax credit for costs paid for new construction of new broadband networks to residences and small businesses located in rural, unserved areas.

2023-S4554 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4554

SPONSOR: HELMING
 
TITLE OF BILL:

An act to amend the state technology law and the tax law, in relation to
a refundable tax credit provided to broadband deployment to residences
and small businesses located in rural, unserved areas

 
PURPOSE:

This bill promotes rural broadband deployment by providing residents and
small businesses with tax credits for broadband deployment.

 
SUMMARY OF PROVISIONS:

Section 1: Sites the name of this act as the Credit for Rural Broadband
Act

Section 2. of the bill charges the office of information technology
services, in conjunction with input from the advisory council, to veri-
fying an "unserved" area under the credit for rural broadband act of

2014, using broadband mapping data at the time a project is proposed.

Section 3. of the bill creates a fully refundable broadband deployment
tax credit for small businesses' reasonable out of pocket expenses for
broadband network construction in their unserved areas, in partnership
with a broadband provider. The credit is paid to the customer over a 5
year period.

Section 4 of the bill creates a fully refundable broadband deployment
tax credit for residents' reasonable out of pocket expenses for broad-
band network construction in their unserved areas, in partnership with a
broadband provider. The credit is paid to the customer over a 5 year
period.

Section 5. contains the immediate effective date for tax years in 2024
and thereafter.

 
JUSTIFICATION:

Our rural areas in New York pose an extraordinary challenge for broad-
band deployment. Geographic isolation, topographic conditions and centu-
ries-old settlement patterns leave small pockets of New Yorkers without
access to a high-speed broadband connection capable of managing today's
bandwidth-intensive applications.

This totally refundable tax credit is a continuation of previous efforts
at broadband deployment and has numerous strengths that will enhance
broadband deployment to rural, unserved areas. The Rural Broadband
Deployment Act will allow residents and small businesses in unserved
areas to come together, pool their economic power and select a broadband
provider to deploy services to their area. Any eligible out of pocket
expenses the resident or small business incurs for the construction of
the network, will be eligible for a 100% refundable tax credit, over 5
years. No broadband provider is eligible for the credit and the provider
must make a significant contribution to the construction costs.

Strengths include:
*More bang for the buck. Credits are only allowed for deployment in
unserved areas so precious tax expenditures will not be used to dupli-
cate existing infrastructure;

*Rural broadband will deploy far more rapidly.

*The program is technology and provider neutral. The local taxpayers
decide what technology and provider they wish to select for
service(wireline, wireless, etc.) - so all providers and technology
types compete on a level playing field;

*The program is a true Public-private partnership. It, requires a
significant provider contribution in partnership with the public, and
only residential and small business customers can receive a Rural Broad-
band Deployment tax credit.

*The expense is broadly shared. As a tax credit, the expenditures will
come from the State's general fund so no one group of New Yorkers are
singled out to bear the burden of deployment, consistent with the
ConnectNY approach.

 
LEGISLATIVE HISTORY:

2021-2022: S.5625 referred to Internet and Technology

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and be to tax years beginning on
or after January 1, 2024.

2023-S4554 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4554
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2023
                                ___________
 
 Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
   printed to be committed to the Committee on Internet and Technology
 
 AN ACT to amend the state technology law and the tax law, in relation to
   a refundable tax credit provided to broadband deployment to residences
   and small businesses located in rural, unserved areas

   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 "credit for
 rural broadband act".
   §  2.  Section  104 of the state technology law is amended by adding a
 new subdivision 3 to read as follows:
   3. THE OFFICE OF INFORMATION TECHNOLOGY SERVICES, IN CONJUNCTION  WITH
 INPUT  FROM  THE  ADVISORY COUNCIL, IS HEREBY AUTHORIZED AND DIRECTED TO
 PROMULGATE RULES AND REGULATIONS NECESSARY FOR VERIFYING  AN  "UNSERVED"
 AREA  UNDER  THE CREDIT FOR RURAL BROADBAND ACT, USING BROADBAND MAPPING
 DATA AT THE TIME A PROJECT IS PROPOSED.
   § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 59 to read as follows:
   59.  CREDIT  FOR RURAL BROADBAND DEPLOYMENT.  (A) ALLOWANCE OF CREDIT.
 A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED
 BY  THIS  ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
 CONSTRUCTION RESULTING FROM NEW NETWORK CONSTRUCTION TO  DELIVER  BROAD-
 BAND  SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS LOCATED
 IN AN UNSERVED AREA.  THE CREDIT ALLOWED BY THIS  SUBDIVISION  SHALL  BE
 CLAIMED ANNUALLY OVER A FIVE-YEAR PERIOD EQUAL TO ONE-FIFTH OF THE CRED-
 IT  AMOUNT. IF THE CREDIT ALLOWED UNDER THIS SUBDIVISION IS GREATER THAN
 THE TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS
 SUCH TAX DUE IS TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE  REFUNDED  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND EIGHTY-SIX OF
 THIS CHAPTER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09102-01-3
 S. 4554                             2

 
   (B) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS  SHALL
 APPLY:
   (1)   "QUALIFIED  CONSTRUCTION  EXPENSES"  EQUAL  THE  TOTAL  COST  OF
 CONSTRUCTION OF NEW NETWORKS IN THE PROPOSED UNSERVED SERVICE  AREA,  AS
 CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED A REASON-
 ABLE  COST  BASED  UPON  THE  AVERAGE COST PER MILE OF BROADBAND NETWORK
 CONSTRUCTION AS DETERMINED BY THE COMMISSIONER IN CONSULTATION WITH  THE
 PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS.
   (2) "QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION" IS DETER-
 MINED  IN  ACCORDANCE  WITH THE FOLLOWING FORMULA: (QCE/TC) - (ACM/35) =
 QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS THE
 AVERAGE COST OF CONSTRUCTION PER MILE IN THE PROPOSED  UNSERVED  SERVICE
 AREA,  AS CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED
 A REASONABLE COST BASED UPON THE AVERAGE  COST  PER  MILE  OF  BROADBAND
 NETWORK  CONSTRUCTION  AS DETERMINED BY THE COMMISSIONER IN CONSULTATION
 WITH THE PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE  PROVIDERS;  TC
 EQUALS  THE  NUMBER  OF  RESIDENTS  AND  SMALL BUSINESS CUSTOMERS IN THE
 PROPOSED UNSERVED SERVICE AREA MAKING A QUALIFIED CUSTOMER  CONTRIBUTION
 IN  AID  TO  CONSTRUCTION AND CONTRACTING FOR SERVICES OVER THE NETWORK;
 AND  QC  EQUALS  THE  QUALIFIED  CUSTOMER   CONTRIBUTION   IN   AID   OF
 CONSTRUCTION.
   (3)  "REQUIRED  PROVIDER  CONTRIBUTION  IN  AID TO CONSTRUCTION" SHALL
 EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
 IFIED CUSTOMER CONTRIBUTIONS IN AID  TO  CONSTRUCTION  IN  THE  PROPOSED
 UNSERVED SERVICE AREA.
   (4)  "BROADBAND  SERVICE"  MEANS  INTERNET  ACCESS SERVICE WITH TRANS-
 MISSION SPEEDS THAT ARE EQUAL TO OR  GREATER  THAN  COMBINED  ADVERTISED
 DOWNLOAD  SPEEDS  OF  AT  LEAST  4 MEGABITS PER SECOND (MBPS) AND UPLOAD
 SPEEDS OF AT LEAST 1 MBPS OVER THE PROVIDER'S NETWORK.
   (5) "UNSERVED AREA" MEANS AN AREA COMPOSED OF ONE OR  MORE  CONTIGUOUS
 CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
 FACILITIES-BASED  TERRESTRIAL  BROADBAND SERVICE. A HOUSEHOLD HAS ACCESS
 TO A BROADBAND SERVICE IF THE HOUSEHOLD CAN READILY  SUBSCRIBE  TO  THAT
 SERVICE UPON REQUEST.
   (6)  "QUALIFIED  TAXPAYER"  MEANS A TAXPAYER WHICH IS A SMALL BUSINESS
 CORPORATION AS DEFINED IN PARAGRAPH THREE OF SUBSECTION (C)  OF  SECTION
 TWELVE  HUNDRED  FORTY-FOUR OF THE INTERNAL REVENUE CODE (WITHOUT REGARD
 TO THE SECOND SENTENCE OF SUBPARAGRAPH (A) THEREOF) AS OF THE  LAST  DAY
 OF THE TAXABLE YEAR.
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (bbb) to read as follows:
   (BBB) CREDIT FOR RURAL BROADBAND DEPLOYMENT.  (A) ALLOWANCE OF CREDIT.
 A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED
 BY  THIS  ARTICLE EQUAL TO ANY QUALIFIED CUSTOMER CONTRIBUTION IN AID OF
 CONSTRUCTION RESULTING FROM NEW NETWORK CONSTRUCTION TO  DELIVER  BROAD-
 BAND  SERVICE TO THE INDIVIDUAL'S RESIDENCE OR PLACE OF BUSINESS LOCATED
 IN AN UNSERVED AREA.  THE CREDIT ALLOWED BY  THIS  SUBSECTION  SHALL  BE
 CLAIMED ANNUALLY OVER A FIVE-YEAR PERIOD EQUAL TO ONE-FIFTH OF THE CRED-
 IT  AMOUNT.  IF THE CREDIT ALLOWED UNDER THIS SUBSECTION IS GREATER THAN
 THE TAX DUE IN ANY TAXABLE YEAR, THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS
 SUCH TAX DUE IS TREATED AS AN OVERPAYMENT  OF  TAX  TO  BE  REFUNDED  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF SECTION ONE THOUSAND EIGHTY-SIX OF
 THIS CHAPTER.
   (B) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  DEFINITIONS  SHALL
 APPLY:
 S. 4554                             3
 
   (1)   "QUALIFIED  CONSTRUCTION  EXPENSES"  EQUAL  THE  TOTAL  COST  OF
 CONSTRUCTION OF NEW NETWORKS IN THE PROPOSED UNSERVED SERVICE  AREA,  AS
 CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO EXCEED A REASON-
 ABLE  COST  BASED  UPON  THE  AVERAGE COST PER MILE OF BROADBAND NETWORK
 CONSTRUCTION  AS DETERMINED BY THE COMMISSIONER IN CONSULTATION WITH THE
 PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS.
   (2) "QUALIFIED CUSTOMER CONTRIBUTION IN AID OF CONSTRUCTION" IS DETER-
 MINED IN ACCORDANCE WITH THE FOLLOWING FORMULA: (QCE/TC)  -  (ACM/35)  =
 QC, WHERE QCE EQUALS THE QUALIFIED CONSTRUCTION EXPENSES; ACM EQUALS THE
 AVERAGE  COST  OF CONSTRUCTION PER MILE IN THE PROPOSED UNSERVED SERVICE
 AREA, AS CERTIFIED BY THE BROADBAND SERVICE PROVIDER, BUT NOT TO  EXCEED
 A  REASONABLE  COST  BASED  UPON  THE AVERAGE COST PER MILE OF BROADBAND
 NETWORK CONSTRUCTION AS DETERMINED BY THE COMMISSIONER  IN  CONSULTATION
 WITH  THE  PUBLIC SERVICE COMMISSION AND BROADBAND SERVICE PROVIDERS; TC
 EQUALS THE NUMBER OF RESIDENTS  AND  SMALL  BUSINESS  CUSTOMERS  IN  THE
 PROPOSED  UNSERVED SERVICE AREA MAKING A QUALIFIED CUSTOMER CONTRIBUTION
 IN AID TO CONSTRUCTION AND CONTRACTING FOR SERVICES  OVER  THE  NETWORK;
 AND   QC   EQUALS   THE   QUALIFIED  CUSTOMER  CONTRIBUTION  IN  AID  OF
 CONSTRUCTION.
   (3) "REQUIRED PROVIDER CONTRIBUTION  IN  AID  TO  CONSTRUCTION"  SHALL
 EQUAL THE QUALIFIED CONSTRUCTION EXPENSES, LESS THE SUM OF ALL THE QUAL-
 IFIED  CUSTOMER  CONTRIBUTIONS  IN  AID  TO CONSTRUCTION IN THE PROPOSED
 UNSERVED SERVICE AREA.
   (4) "BROADBAND SERVICE" MEANS  INTERNET  ACCESS  SERVICE  WITH  TRANS-
 MISSION  SPEEDS  THAT  ARE  EQUAL TO OR GREATER THAN COMBINED ADVERTISED
 DOWNLOAD SPEEDS OF AT LEAST 4 MEGABITS  PER  SECOND  (MBPS)  AND  UPLOAD
 SPEEDS OF AT LEAST 1 MBPS OVER THE PROVIDER'S NETWORK.
   (5)  "UNSERVED  AREA" MEANS AN AREA COMPOSED OF ONE OR MORE CONTIGUOUS
 CENSUS BLOCKS WHERE AT LEAST NINETY PERCENT OF HOUSEHOLDS LACK ACCESS TO
 FACILITIES-BASED TERRESTRIAL BROADBAND SERVICE. A HOUSEHOLD  HAS  ACCESS
 TO  A  BROADBAND  SERVICE IF THE HOUSEHOLD CAN READILY SUBSCRIBE TO THAT
 SERVICE UPON REQUEST.
   (6) "QUALIFIED TAXPAYER" MEANS ANY INDIVIDUAL WITH NEW  YORK  ADJUSTED
 GROSS INCOME OF TWO HUNDRED FIFTY THOUSAND DOLLARS OR LESS.
   §  5.  This  act  shall take effect immediately and shall apply to tax
 years beginning on or after January 1, 2024.

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Senate Bill S4554

Sponsored By

Current Bill Status - In Senate Committee Internet And Technology Committee

co-Sponsors

2023-S4554 (ACTIVE) - Details

2023-S4554 (ACTIVE) - Summary

2023-S4554 (ACTIVE) - Sponsor Memo

2023-S4554 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4554

Share this bill

Sponsored By

Pamela Helming

Current Bill Status - In Senate Committee Internet And Technology Committee

co-Sponsors

George M. Borrello

Peter Oberacker

2023-S4554 (ACTIVE) - Details

2023-S4554 (ACTIVE) - Summary

2023-S4554 (ACTIVE) - Sponsor Memo

2023-S4554 (ACTIVE) - Bill Text download pdf

Comments