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House approves seven-year deduction to spur broadband expansion; floor narrows purpose language
Summary
HB 27-11 would reduce the assessment rate for broadband infrastructure investment from 33% to 12% for seven years; floor amendments added language specifying the purpose is to promote expansion of fiber and broadband services and addressed whether upgrades within existing territories qualify.
Representative from Bates introduced HB 27-11 to lower the assessment rate applied to broadband infrastructure investment from 33% to 12% for a seven-year window, aiming to incentivize buildout of fiber and broadband services. Representative from Webster offered an amendment to explicitly state the deduction's purpose "for the purpose of promoting expansion of fiber and broadband communication services in the state," an amendment supporters said would help ensure tax savings are used to expand networks rather than simply upgrade existing service where no expansion to new customers occurs.
Floor debate focused on whether the deduction should apply to upgrades within existing service territories and how to define "expansion." Sponsor and supporters said upgrades that are necessary to extend service to unserved customers should qualify because backbone or hub upgrades are sometimes required to reach new customers. Skeptics asked whether developers upgrading for anticipated new subdivisions would receive a deduction for work they would have done anyway.
The House adopted the amendment clarifying purpose and later voted to adopt the committee substitute as amended; the measure was perfected and printed for further steps.
