Snowe reintroduces broadband Internet access legislation

WASHINGTON – U.S. Sens. Olympia J. Snowe, R-Maine, and Jay Rockefeller, D-W.Va., are re-introducing the Broadband Internet Access Act, which would provide tax credits to companies that invest in high-speed Internet facilities to promote broadband development in rural, low-income areas.

“Underserved communities, mainly rural and low-income areas, are the victims of a digital divide that continues to grow. Their infrastructure is lagging and their access is poor. Without serious investment in current-generation and next-generation technologies, these areas will continue to struggle, which will hamper business development and consumer use,” Snowe said.

Snowe is a member of the Senate Committee on Finance and subcommittee on Commerce, Science and Transportation that has jurisdiction over the legislation.

The Broadband Internet Access Act provides the following temporary, two-tiered tax incentive to stimulate new investment in critical infrastructure.

The range of delivery technologies includes standard telephone wire, cable, fiber optics, terrestrial wireless and satellite:

. 10 percent tax credit for investment in “current-generation” broadband infrastructure in rural and underserved areas.

. 20 percent tax credit for investment in “next-generation” broadband infrastructure in rural, underserved and residential areas.

Credits are earned only after a service provider achieves 10 percent market penetration to ensure that funds are concentrated on competitive market solutions.