<div>November 15, 2019 Senators Hassan, Capito Introduce Bipartisan Bills to Spur Investment in Rural Broadband The Two Bills Would Create a Tax Credit for States and Localities to Direct Toward Rural Broadband Projects, and Support Public-Private and Municipally Directed Rural Broadband Bonds WASHINGTON – Senators Maggie Hassan (D-NH) and Shelley Moore Capito (R-WV) introduced two bipartisan bills to help states, cities, and towns spur investment in rural broadband projects. The bills complement ongoing efforts in New Hampshire to provide local governments with innovative financing options for broadband projects, giving states and localities additional resources to invest in rural broadband. The Rural Broadband Investment Tax Credit, led by Senator Hassan and cosponsored by Senator Capito, would create a federal tax credit that states and localities could direct toward rural broadband projects. The Rural Broadband Financing Flexibility Act, led by Senator Capito and cosponsored by Senator Hassan, would allow state and local governments to issue tax-exempt bonds to finance public-private rural broadband projects, and allow the federal government to assist state and local governments in bond payments. “From innovative small businesses owners who need reliable broadband access to kids across our state who need to get online to do their schoolwork, it’s clear that more work needs to be done to ensure that rural communities in the Granite State and across the country have better broadband access,” said Senator Hassan. “The bills that Senator Capito and I introduced give states and localities the resources and flexibility that they need to assess and finance broadband projects in the areas that most need it.” “Since launching Capito Connect in 2015, I’ve been working every angle to ensure rural areas get reliable, affordable connectivity,” Senator Capito said. “The bills I’ve introduced with Senator Hassan provide additional funding revenues for communities looking to invest in rural broadband. By incentivizing buildout and expanding financing options, these bills work together to help close the digital divide in West Virginia and across rural America.” Following the 2018 passage of New Hampshire SB 170, which permitted localities to issue municipal bonds for broadband construction, New Hampshire towns have started to use that authority to expand broadband access to their residents. The access to new bond and tax credit authority in the Hassan-Capito bills would serve as additional tools that states and localities can flexibly tailor to the broadband needs of their residents. As part of their efforts to close the rural-urban digital divide, Senators Hassan and Capito have partnered on efforts to expand rural broadband access. <a href="https://www.hassan.senate.gov/news/press-releases/senators-hassan-and-capito-introduce-bipartisan-legislation-to-help-close-the-rural-urban-digital-divide">They introduced the Rural Reasonable and Comparable Wireless Access</a> <a href="https://www.hassan.senate.gov/news/press-releases/senators-hassan-and-capito-introduce-bipartisan-legislation-to-help-close-the-rural-urban-digital-divide">Act to help ensure that there is equitable wireless and broadband service </a>in rural and urban areas, which has long been undefined. The two Senators are <a href="https://www.hassan.senate.gov/news/press-releases/senator-hassan-cosponsors-bipartisan-bill-to-improve-access-to-broadband-in-new-hampshire">also cosponsors of the bipartisan Broadband Deployment Accuracy and</a> <a href="https://www.hassan.senate.gov/news/press-releases/senator-hassan-cosponsors-bipartisan-bill-to-improve-access-to-broadband-in-new-hampshire">Technological Availability (DATA) Act, which would push the Federal</a> Communications Commission (FCC) to improve its broadband coverage maps by directing the FCC to require more detailed coverage data from service providers, and develop a process for consumers and stakeholders to challenge the accuracy of those broadband maps. Additionally, Senators Hassan and Capito serve together as Honorary Co-chairs for the Global Women’s Innovation Network (WIN), an organization that provides a dynamic forum for women who are passionate about innovation. Read a one-pager on the new bills that Senators Hassan and Capito introduced <a href="https://www.hassan.senate.gov/imo/media/doc/Hassan-Capito%20Rural%20Broadband%20Bills%20One-Pager.pdf">here.</a>  ### Rural Broadband Investment Tax Credit and Financing Flexibility ActsSenator Maggie Hassan and Senator Shelley Moore Capito The Problem: Families and businesses alike need fast and reliable internet access in order to fully participate in the 21st Century economy, yet millions of Americans living in rural areas currently lack access to high-speed internet service. With the rise of entire industries dependent on high-speed data connections, the so-called “next generation economy” has created businesses that provide jobs and allow Americans to prosper. In addition to the economic benefits, broadband enables individuals to connect and engage with their families and their communities. However, rural Americans, as a group, are <a href="https://www.pewresearch.org/fact-tank/2019/05/31/digital-gap-between-rural-and-nonrural-america-persists/">less likely than urban Americans </a>to have broadband access. According to the Federal Communications Commission, rural areas <a href="https://docs.fcc.gov/public/attachments/FCC-19-44A1.pdf">greatly lag behind their urban counterparts</a> in broadband availability. A major barrier to full internet access in rural areas is the high cost of building broadband infrastructure, due to factors including lower population density and physically challenging terrain. The Solution: The Rural Broadband Investment Tax Credit and Financing Flexibility Acts, two bipartisan bills introduced by Senators Hassan and Capito, would give states, cities, and towns greater resources and flexibility to promote investment in rural broadband projects. These bills would work in tandem to provide state and local governments with new tools to leverage private investment and incentivize broadband buildout in rural areas. The Rural Broadband Investment Tax Credit Act would create a federal tax credit that states and localities could direct towards rural broadband projects, thereby empowering communities to award tax incentives to broadband projects which most directly address their needs. Specifically, the bill would:<ul><li>Create a new federal investment tax credit covering 10 percent of an internet provider’s investment in gigabit speed-capable broadband infrastructure in rural areas</li></ul> <ul><li>Guarantee each state $5 million in investment tax credits annually - with additional credits available based on rural population - which can then be awarded to rural broadband projects</li><li>Give states and towns flexibility in prioritizing projects for investment tax credits by:o. Empowering states and localities to nominate broadband projects for investment tax creditso. Giving states authority to prioritize projects when applications exceed annual tax credit limits</li></ul><ul><li>Ensure accountability and provide guardrails by:</li></ul> p. Requiring broadband projects to be nominated by state or local governments o. Requiring Treasury, alongside the FCC and USDA, to certify that nominated broadband projects would serve rural areas lacking gigabit-capable broadband infrastructure The Rural Broadband Financing Flexibility Act would expand state and local governments’ financing options by allowing the issuance of two types of bonds that can be used for public-private partnerships or municipally-directed rural broadband projects. Specifically, the bill would:<ul><li>Support investments in rural high-speed internet deployment by permitting state and local governments to issue tax-favored Private Activity Bonds and Direct Payment Bonds for broadband infrastructure</li></ul> <div class="indented"><div class="indented">o Private Activity Bonds are tax-exempt bonds issued by state and local governments used to finance projects in partnership with the private sector.</div></div> <div class="indented"><div class="indented">o Direct Payment Bonds allow state and local governments to receive a direct payment covering 35 percent of their interest payments to investors. Each state would be guaranteed $25 million in bonding authority each year, with an additional $1.25 billion in authority allocated among the states according to rural population.</div></div></div>

Senators Announce Bill to Encourage Rural Broadband Projects

Senators Announce Bill to Encourage Rural Broadband Projects

U.S. Senate

In a November 15 release, Senate Finance Committee member Maggie Hassan, D-N.H., and Sen. Shelley Moore Capito, R-W.Va., announced the Rural Broadband Investment Tax Credit Act, which would create an investment tax credit that states and localities could award to rural broadband projects.

In a November 15 release, Senate Finance Committee member Maggie Hassan, D-N.H., and Sen. Shelley Moore Capito, R-W.Va., announced the Rural Broadband Investment Tax Credit Act, which would create an investment tax credit that states and localities could award to rural broadband projects.