An Act providing a corporation business tax credit for certain investment in broadband infrastructure in underserved communities and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"Bit" means the smallest unit of computerized binary data.

"Broadband telecommunications infrastructure" shall have the same meaning as provided in section 1 of P.L.2007, c.191 (C.40:9D-1).

"Broadband telecommunications service" means any telecommunications service using broadband telecommunications infrastructure for the purpose of offering high speed, switched, broadband wireline or wireless telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, or video telecommunications through the Internet, using any technology, and, concerning wireline broadband telecommunications service, having actual download speeds of at least 50 megabits per second and actual upload speeds of at least 20 megabits per second.

"Megabit per second" means a computerized binary data transfer capacity over a computer network equal to one million bits per second.

2. a. A taxpayer providing broadband telecommunications service shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 25 percent of the amount paid during the privilege period for the installation, construction, reconstruction, or erection of improvements or additions of broadband telecommunications infrastructure that result in the provision or expansion of broadband telecommunications service in municipalities in this State having a population of less than 10,000.

An unused credit may be carried forward, if necessary, for use in

the seven privilege periods following the privilege period for which the credit is allowed.

b. A credit shall not be allowed under P.L.1993, c.170 (C.54:10A-5.4 et seq.), P.L.1993, c.171 (C.54:10A-5.16 et al.), P.L.1993, c.175 (C.54:10A-5.24), or P.L.2001, c.321 (C.54:10A-5.31 et seq.) for expenditures for which a credit is allowed pursuant to this section.

c. The order of priority of the application of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall not exceed 50 percent of the tax liability otherwise due against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). When the credit under this section is combined with any other credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), the maximum credit shall not be greater than the highest percentage allows under any applied credit and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).

3. This act shall take effect immediately and apply to amounts paid in privilege periods beginning after the date of enactment.

STATEMENT

This bill allows a corporation business tax credit for 25 percent of the costs of the installation, construction, reconstruction, or erection of improvements or additions of broadband telecommunications infrastructure that result in the provision or expansion of broadband telecommunications service in municipalities in this State having a population of less than 10,000.

The bill provides that expenditures for broadband telecommunications infrastructure installation, construction, reconstruction, or erection of improvements or additions for which a credit is allowed under this bill are not to be considered expenditures for which a credit is allowed under the New Jobs Investment Tax Credit, the Manufacturing and Employment Investment Tax Credit, the Research and Development Credit, or the Effluent Treatment and Conveyance Equipment Credit.

The bill defines "broadband telecommunications infrastructure" as information equipment and facilities, information systems, and information technology used for the purpose of providing broadband telecommunications service. The bill defines "broadband telecommunications service" as any telecommunications service using broadband telecommunications infrastructure for the purpose of offering high speed, switched, broadband wireline or wireless telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, or video telecommunications through the Internet, using any technology, and, concerning wireline broadband telecommunications service, having actual download speeds of at least 50 megabits per second and actual upload speeds of at least 20 megabits per second.