HR 3598 IH, National Free Public Internet Access Act of
2000.
Re: creation of a tax credit for providing free public Internet access.
Date Introduced: February 8, 2000.
Sponsor: Rep. James Rogan (R-CA).
Source: Library of Congress.
106th CONGRESS 2d Session |
H. R. 3598 |
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for businesses which provide free public Internet access.
IN THE HOUSE OF REPRESENTATIVES
February 8, 2000
Mr. ROGAN introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for businesses which provide free public Internet access.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the `National Free Public Internet Access Act of 2000'.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:
`(a) IN GENERAL- For purposes of section 38, the free public Internet access credit determined under this section for the taxable year is an amount equal to 100 percent of the Internet access expenditures of the taxpayer for such taxable year.
`(b) DOLLAR LIMITATION-
`(1) IN GENERAL- The credit allowable under subsection (a) for any taxable year shall not exceed $100,000.
`(2) AGGREGATION RULES- All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer for purposes of paragraph (1).
`(c) INTERNET ACCESS EXPENDITURE- For purposes of this section, the term `free public Internet access expenditure' means any amount paid or incurred during the taxable year--
`(1) to acquire any computer--
`(A) used exclusively in providing Internet access without charge to the general public, and
`(B) with respect to which a deduction for depreciation (or amortization in lieu of depreciation) is allowable, and
`(2) for Internet access for such computer.
`(d) NO DOUBLE BENEFIT-
`(1) REDUCTION IN BASIS- For purposes of this subtitle, if a credit is determined under this section with respect to any property, the basis of such property shall be reduced by the amount of the credit so determined.
`(2) OTHER DEDUCTIONS AND CREDITS- No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section.
`(e) RECAPTURE IN CERTAIN CASES- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which is not used exclusively in providing Internet access without charge to the general public at any time.'
(b) CONFORMING AMENDMENTS-
(1) Section 38(b) of such Code is amended--
(A) by striking `plus' at the end of paragraph (11),
(B) by striking the period at the end of paragraph (12) and inserting `, plus', and
(C) by adding at the end the following new paragraph:
`(13) the free public Internet access credit determined under section 45D.'.
(2) Subsection (d) of section 39 of such Code (relating to carryback and carryforward of unused credits) is amended by adding at the end the following new paragraph:
`(9) NO CARRYBACK OF SECTION 45D CREDIT BEFORE JANUARY 1, 2001- No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 45D may be carried back to a taxable year beginning before January 1, 2001.'.
(3) Subsection (a) of section 1016 of such Code (relating to adjustments to basis) is amended by striking `and' at the end of paragraph (26), by striking the period at the end of paragraph (27) and inserting `, and', and by adding at the end the following new paragraph:
`(28) to the extent provided in section 45D(d)(1) (relating to credit for business-provided free Internet access.'.
(4) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:
`Sec. 45D. Credit for business-provided free public Internet access.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2000.