HF 2533

as introduced - 87th Legislature (2011 - 2012) Posted on 02/27/2012 01:09pm

A bill for an act
relating to taxes; individual income and corporate franchise; allowing a credit
for installations of certain broadband equipment; amending Minnesota Statutes
2010, section 290.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 36. new text end

new text begin Broadband provision in underserved areas. new text end

new text begin (a) For the purposes of this
subdivision, the following terms have the meanings given them:
new text end

new text begin (1) "Broadband service" means a service that allows subscribers to access
information from the Internet by means of a physical, terrestrial, nonmobile technology.
new text end

new text begin (2) "Qualified broadband equipment" means broadband equipment that:
new text end

new text begin (i) is necessary to the provision of broadband service;
new text end

new text begin (ii) is installed in an underserved area by a telecommunications carrier or a person
that operates a cable communications system; and
new text end

new text begin (iii) provides minimum download speeds of at least ten megabits per second and
minimum upload speeds of at least five megabits per second.
new text end

new text begin (3) "Telecommunications carrier" has the meaning given in United States Code, title
47, section 153, paragraph (49), but does not include a commercial mobile service provider.
new text end

new text begin (4) "Underserved area" means an area where no provider of broadband services
advertises broadband speeds of three or more megabits per second download and 768
kilobits or more per second upload.
new text end

new text begin (b) A taxpayer may take a credit against the tax due under this chapter equal to three
percent of the investment made in qualified broadband equipment.
new text end

new text begin (c) No equipment shall qualify for the credit provided in paragraph (b) until the
taxpayer applies to and obtains from the commissioner of commerce a determination
confirming that the installed broadband equipment is qualified broadband equipment.
new text end

new text begin (d) The credit provided in paragraph (b) must not exceed, in any one taxable year,
the lesser of:
new text end

new text begin (i) the amount of tax due under this chapter, after allowance for all other credits
allowed under this chapter; or
new text end

new text begin (ii) $750,000.
new text end

new text begin (e) If the credit provided under this subdivision exceeds the tax liability of the
corporation for the taxable year, the excess amount of the credit may be carried over to
each of the … taxable years succeeding the taxable year. The entire amount of the credit
must be carried to the earliest taxable year to which the amount may be carried. The
unused portion of the credit must be carried to the following taxable year. No credit
may be carried to a taxable year more than … years after the taxable year in which the
credit was earned.
new text end

new text begin (f) This subdivision expires for taxable years beginning after December 31, …. .
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December 31, 2011, and applies to qualified broadband equipment installed on or after the day following final enactment. new text end