SENATE BILL NO. 172

INTRODUCED BY WATERMAN, SIMON, SWANSON, MOOD, DEPRATU, M. TAYLOR, OHS, GROSFIELD

BY REQUEST OF THE JOINT SELECT COMMITTEE ON JOBS AND INCOME

A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING A 20 PERCENT TELEPHONE COMPANY LICENSE TAX CREDIT FOR ACCELERATED DEPLOYMENT OF ADVANCED TELECOMMUNICATIONS INFRASTRUCTURE IMPROVEMENTS; PROVIDING FOR A COMPETITIVE ADVANCED TELECOMMUNICATIONS INFRASTRUCTURE GRANT PROCESS; AND PROVIDING A DELAYED EFFECTIVE DATE, AN APPLICABILITY DATE, AND A TERMINATION DATE."

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

(Refer to Introduced Bill)

Strike everything after the enacting clause and insert:

NEW SECTION. Section 1. Advanced telecommunications infrastructure tax credit -- definitions. As used in [sections 1 through 3], the following definitions apply:

(1) "Advanced telecommunications infrastructure" means high-speed, dedicated or switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.

(2) "Department" means the department of commerce.

(3) "Telecommunications services provider" means a provider of telecommunications services that is registered with the state and owns or will construct advanced telecommunications infrastructure in this state.

NEW SECTION. Section 2. Advanced telecommunications infrastructure tax credit. (1) There is allowed a tax credit against the tax imposed by Title 15, chapter 53, for advanced telecommunications infrastructure improvements in the state made by a telecommunications services provider in an amount equal to 20% of the total amount of the infrastructure investment.

(2) The tax credit provided for in subsection (1) may not exceed a total of $2 million for all qualified telecommunications services providers in any consecutive 12-month period.

(3) There is no carryback or carryforward of the credit allowed under this section, and the credit must be applied in the year the advanced telecommunications infrastructure improvements were made and may not be refunded if the taxpayer has no tax liability.

NEW SECTION. Section 3. Application to department -- competitive grants -- rulemaking. (1) In order to receive a tax credit against the tax imposed by Title 15, chapter 53, a telecommunications services provider shall apply to the department for consideration through a competitive grant program and certify that the proposed advanced telecommunications infrastructure project provides for improved telecommunications services access to a majority of customers in an unserved or underserved service area and meets other requirements as established by the department.

(2) The application to the department must include:

(a) a description of the advanced telecommunications infrastructure improvement project, including:

(i) expected costs and timelines for completing the project;

(ii) partnerships, consortiums, and interconnection agreements, if necessary, to complete the project; and

(iii) the area in which the advanced telecommunications infrastructure improvements are to be installed and the customers who will be served; and

(b) verification that the advanced telecommunications infrastructure improvements will contribute to greater access to advanced telecommunications services and enhance existing telecommunications infrastructure.

(3) The department shall adopt rules establishing a policy for granting telecommunications services providers an infrastructure tax credit. The rules must consider whether the advanced telecommunications infrastructure improvements:

(a) significantly enhance individual and business access to advanced telecommunications services at an economically reasonable cost;

(b) promote the development and transition to a fully competitive telecommunications marketplace;

(c) improve public and private K-12, university, and library access to advanced telecommunications services;

(d) are required to improve connections between communities in the state; and

(e) increase Montana health care systems' access to interactive telecommunications services.

(4) When the department has determined which telecommunications services providers qualify under the rules established in subsection (3), it shall notify the department of revenue of the telecommunications services providers that are eligible to receive the tax credit pursuant to [section 2].

NEW SECTION. Section 4. Coordination instruction. If House Bill No. 128, House Bill No. 191, and this bill are all passed and approved, [sections 2 and 3] must read as follows:

"NEW SECTION. Section 2. Advanced telecommunications infrastructure tax credit. (1) There is allowed a tax credit against the tax imposed by [sections 1 through 19 of House Bill No. 128] for advanced telecommunications infrastructure improvements in the state made by a telecommunications services provider in an amount equal to 20% of the total amount of the infrastructure investment.

(2) The tax credit provided for in subsection (1) may not exceed a total of $2 million for all qualified telecommunications services providers in any consecutive 12-month period.

(3) There is no carryback or carryforward of the credit allowed under this section, and the credit must be applied in the year the advanced telecommunications infrastructure improvements were made and may not be refunded if the taxpayer has no tax liability.

NEW SECTION. Section 3. Application to department -- competitive grants -- rulemaking. (1) In order to receive a credit against the tax imposed by [sections 1 through 19 of House Bill No. 128], a telecommunications services provider shall apply to the department for consideration through a competitive grant program and certify that the proposed advanced telecommunications infrastructure project provides for improved telecommunications services access to a majority of customers in an unserved or underserved area and meets other requirements as established by the department.

(2) The application to the department must include:

(a) a description of the advanced telecommunications infrastructure improvement project, including:

(i) expected costs and timelines for completing the project;

(ii) partnerships, consortiums, and interconnection agreements, if necessary, to complete the project; and

(iii) the area in which the advanced telecommunications infrastructure improvements are to be installed and the customers who will be served; and

(b) verification that the advanced telecommunications infrastructure improvements will contribute to greater access to advanced telecommunications services and enhance existing telecommunications infrastructure.

(3) The department shall adopt rules establishing a policy for granting telecommunications services providers an infrastructure tax credit. The rules must consider whether the advanced telecommunications infrastructure improvements:

(a) significantly enhance individual and business access to advanced telecommunications services at an economically reasonable cost;

(b) promote the development and transition to a fully competitive telecommunications marketplace;

(c) improve public and private K-12, university, and library access to advanced telecommunications services;

(d) are required to improve connections between communities in the state; and

(e) increase Montana health care systems' access to interactive telecommunications services.

(4) When the department has determined which telecommunications services providers qualify under the rules established in subsection (3), it shall notify the department of revenue of the telecommunications services providers that are eligible to receive the tax credit pursuant to [section 2]."

NEW SECTION. Section 5. Codification instruction. [Sections 1 through 3] are intended to be codified as an integral part of Title 15, and the provisions of Title 15 apply to [sections 1 through 3].

NEW SECTION. Section 6. Effective date. [This act] is effective July 1, 2000.

NEW SECTION. Section 7. Applicability. [This act] applies to tax years beginning after December 31, 1999.

NEW SECTION. Section 8. Termination. [This act] terminates July 1, 2004.

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