,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #gheg  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #cj1 #bjbj,mr4  
,f]guson introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to exclude ga9 f ! sale  
or ex*ange ( ! entire int]e/ 9 a        
:olly-own$ rural incumb5t local ex*ange 
c>ri]1 & = o!r purposes4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,connect
 ,am]ica ,n[ ,act or z ! ,,c ,act4  #b4 
,exclusion ( ga9 f sale ( rural incumb5t
 local ex*ange c>ri] /ock  7a7 ,9 g5]al 
,"p ,,iii ( sub*apt] ,b ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ be=e section #adj ! foll[+ new
 section3  #aci;,i4 ,ga9 f sale ( rural 
incumb5t local ex*ange c>ri] /ock  7a7  
,exclusion ,gross income %all n include 
ga9 f ! sale or ex*ange ( ! entire      
int]e/ 9 a :olly-own$ rural incumb5t    
local ex*ange c>ri]4  7b7 ,apportionm5t 
,9 ! case ( a c>ri] describ$ 9 p>agraph 
7#a7 t s]ves areas n describ$ 9 p>agraph

 7#a71 ! am\nt exclud$ "u subsection 7a7
 %all n exce$ ! product ( su* am\nt 7)\t
 reg>d to ?is p>agraph7 & ! ratio (--   
7#a7 rev5ues attributable to ! provision
 ( communications s]vices 9 an area     
describ$ 9 subsection 7c7 dur+ ! #a-ye> 
p]iod prec$+ su* sale1 to  7#b7 all     
rev5ues dur+ su* p]iod4  7c7 ,rural     
incumb5t local ex*ange c>ri] ,= purposes
 ( ?is section1 ! t]m rural incumb5t    
local ex*ange c>ri] means an incumb5t   
local ex*ange c>ri] t s]ves an area t is
 an area-- 7#a7 :]e ! c>ri] 0 requir$   
7on ! date ( ! enactm5t ( !             
,telecommunications ,act ( #aiif7 by law
 or regulation to provide communications
 s]vices to any cu/om] reg>dless ( co/1 
&  7#b7 o!r ?an an urbaniz$ area )--    
7,a7 n few] ?an #ej1jjj p1 &  7,b7 a    
core :]e !re are n few] ?an #a1jjj p p] 
squ>e mile4  7d7 ,def9itions ,= purposes
 ( ?is section1 t]ms def9$ 9 !          
,communications ,act ( #aicd h ! mean+  
giv5 su* t]ms 9 su* ,act4  7e7          
,t]m9ation ,?is section %all n apply to 

sales or ex*anges = :i* an application =
 a c]tificate "u section #bad ( !       
,communications ,act ( #aicd is fil$    
aft] ! date t is #e ye>s aft] ! date ( !
 enactm5t ( ?is section4  4  7b7 ,con=m+
 am5dm5t ,section #cch7;a7 ( su* ,code  
is am5d$ by ins]t+ 7o!r ?an section     
#aci;,i7 aft] ,= purposes ( ?is         
subtitle4  7c7 ,cl]ical am5dm5t ,! table
 ( sections = "p ,,iii ( sub*apt] ,b (  
*apt] #a ( su* ,code is am5d$ by ins]t+ 
be=e ! item relat+ to section #adj !    
foll[+ new item3  ,sec4 #aci;,i4 ,ga9 f 
sale ( rural incumb5t local ex*ange     
c>ri] /ock4  4  7d7 ,effective date ,!  
am5dm5ts made by ?is section %all apply 
to sales or ex*anges aft] ! date ( !    
enactm5t ( ?is ,act4  #c4 ,recapture (  
exclusion ( ga9 f sale ( rural incumb5t 
local ex*ange c>ri] /ock  7a7 ,9 g5]al  
,sub*apt] ,b ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new "p3  ,,xii        
,recapture ( exclusion ( ga9 f sale (   
rural incumb5t local ex*ange c>ri] /ock 

,sec4 #bib4 ,recapture ( exclusion ( ga9
 f sale ( rural incumb5t local ex*ange  
c>ri] /ock4  #bib4 ,recapture (         
exclusion ( ga9 f sale ( rural incumb5t 
local ex*ange c>ri] /ock  7a7 ,9 g5]al  
,if a taxpay] acquir$ /ock ( a rural    
incumb5t local ex*ange c>ri] 9 a sale or
 ex*ange describ$ 9 section #aci;,i &   
su* c>ri] is n1 = a qualifi$ #a-ye>     
p]iod ) respect to su* sale or ex*ange1 
a rural incumb5t local ex*ange c>ri]1   
su* taxpay]'s taxable income "u ?is     
*apt] = ! taxable ye> 9 :i* su* #a-ye>  
p]iod ends %all be increas$ by product (
 #a_/f & any am\nt exclud$ f tax by any 
p]son ) respect to su* sale or ex*ange  
"u su* section4 ,su* increase %all be   
treat$ z capital ga94  7b7 ,rural       
incumb5t local ex*ange c>ri] ,= purposes
 ( ?is section1 ! t]m rural incumb5t    
local ex*ange c>ri] means1 ) respect to 
a qualifi$ #a-ye> p]iod1 a rural        
incumb5t local ex*ange c>ri] 7z def9$ 9 
section #dh;,d7 t (f]s broadb& int]net  
access s]vice at upload & d[nload spe$s 

( at lea/ #a1jjj megabits p] second--   
7#a7 9 ! case ( ! #d? qualifi$ #a-ye>   
p]iod1 to n less ?an #cj p]c5t (        
locations 9 an area describ$ 9 section  
#aci;,i7c77#b71  7#b7 9 ! case ( ! #e?  
qualifi$ #a-ye> p]iod1 to n less ?an #dj
 p]c5t ( su* locations1 &  7#c7 9 ! case
 ( ! #f? qualifi$ #a-ye> p]iod1 to n    
less ?an #ej p]c5t ( su* locations4  7c7
 ,qualifi$ #a-,ye> p]iod ,= purposes (  
?is section1 ! t]m qualifi$ #a-ye> p]iod
 means1 ) respect to a rural incumb5t   
local ex*ange c>ri] ) respect to a sale 
or ex*ange describ$ 9 subsection        
#aci;,i1 ! #a-ye> p]iod />t+ on ! date (
 su* sale or ex*ange1 & ea* ( ! #e      
subsequ5t #a-ye> p]iods4  7d7           
,def9itions ,= purposes ( ?is section1  
t]ms def9$ 9 ! ,communications ,act (   
#aicd h ! mean+ giv5 su* t]ms 9 su*     
,act4  4  7b7 ,cl]ical am5dm5t ,! table 
( p>ts ( sub*apt] ,b ( *apt] #a ( su*   
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,"p ,,xii--,recapture (     
exclusion ( ga9 f sale ( rural incumb5t 

local ex*ange c>ri] /ock  4  7c7        
,effective date ,! am5dm5ts made by ?is 
section %all apply aft] ! date ( !      
enactm5t ( ?is ,act4  #d4 ,rural        
communications inve/m5t tax cr$it  7a7  
,9 g5]al ,subp>t ,e ( "p ,,iv ( sub*apt]
 ,a ( *apt] #a ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by ins]t+ aft]   
subsection #dh;,c ! foll[+ new section3 
#dh;,d4 ,rural communications inve/m5t  
cr$it  7a7 ,9 g5]al  7#a7 ,cr$it am\nt  
,= ! purposes ( section #df1 9 ! case ( 
a rural incumb5t local ex*ange c>ri]1 ! 
rural communications inve/m5t cr$it =   
any taxable ye> is an am\nt equal to #cj
 p]c5t ( ! am\nts t are paid or incurr$ 
by su* c>ri] dur+ any qualifi$ #a-ye>   
p]iod end+ 9 su* taxable ye> to pur*ase1
 ma9ta91 or improve prop]ty = ! purpose 
( provid+ voice telephone s]vice or     
broadb& int]net access s]vice 9 an area 
describ$ 9 section #aci;,i7c77#b74  7#b7
 ,exclusion ( c]ta9 ,f$]al funds ,am\nts
 paid or incurr$ :i* are o!rwise tak5   
into acc\nt "u p>agraph 7#a7 ) respect  

to any qualifi$ #a-ye> p]iod %all be    
r$uc$ 7includ+ = purposes ( subsection  
7b77 by ! am\nt ( any ,f$]al univ]sal   
s]vice support "u section #bed ( !      
,communications ,act ( #aicd = !        
deploym5t ( communications              
infra/ructure1 or any ,f$]al grant = !  
deploym5t ( communications infra/ructure
 receiv$ by su* c>ri] & prop]ly         
attributable to su* p]iod4  7b7 ,rural  
incumb5t local ex*ange c>ri] ,= purposes
 ( ?is section1 ! t]m rural incumb5t    
local ex*ange c>ri] means1 = a #a-ye>   
p]iod1 an incumb5t local ex*ange c>ri]--
 7#a7 ^: /ock has be5 acquir$ 9 a sale  
or ex*ange describ$ 9 section #aci;,i1  
7#b7 = :i*-- 7,a7 ! ratio (-- 7i7 !     
am\nt describ$ 9 subsection 7a77#a71    
divid$ by  7ii7 ! av]age active voice   
telephone s]vice or broadb& int]net     
access s]vice connections dur+ !        
qualifi$ #a-ye> p]iod ref]r$ to 9       
subsection 7a77#a71 is n less ?an  7,b7 
! ratio (-- 7i7 ! product ( #a4be & !   
annualiz$ av]age ( ! am\nts describ$ 9  

subsection 7a77#a7 = ! #c-ye> p]iod     
prec$+ ! sale or ex*ange1 divid$ by     
7ii7 ! av]age active voice telephone    
s]vice or broadb& int]net access s]vice 
connections dur+ su* #c-ye> p]iod1 &    
7#c7 9 ! case ( ! #crd qualifi$ #a-ye>  
p]iod1 t (f]s broadb& int]net access    
s]vice describ$ 9 section #bib7;b7 to n 
less ?an #bj p]c5t ( locations 9 an area
 describ$ 9 section #aci;,i7c77#b74  7c7
 ,qualifi$ #a-,ye> p]iod ,= purposes (  
?is section1 ! t]m qualifi$ #a-ye> p]iod
 means1 ) respect to a rural incumb5t   
local ex*ange c>ri] ) respect to a sale 
or ex*ange describ$ 9 subsection        
#aci;,i1 ! #a-ye> p]iod />t+ on ! date (
 su* sale or ex*ange1 & ea* ( ! #b      
subsequ5t #a-ye> p]iods4  7d7           
,def9itions ,= purposes ( ?is section1  
t]ms def9$ 9 ! ,communications ,act (   
#aicd h ! mean+ giv5 su* t]ms 9 su*     
,act4  7e7 ,transf] ( cr$it ,if1 )      
respect to a cr$it "u subsection 7a7 =  
any taxable ye>1 ! taxpay] elects !     
application ( ?is p>agraph = su* taxable

 ye> ) respect to all 7or any portion   
specifi$ 9 su* election7 ( su* cr$it1 ! 
p]son specifi$ 9 su* election1 & n !    
taxpay]1 %all be treat$ z ! taxpay] =   
purposes ( ?is title ) respect to su*   
cr$it 7or su* portion !re(74  4  7b7    
,con=m+ am5dm5t ,p>agraph 7#f7 ( section
 #df ( su* ,code is am5d$ to read z     
foll[s3  7#f7 ! rural communications    
inve/m5t cr$it4  4  7c7 ,cl]ical am5dm5t
 ,! table ( sections = subp>t ,e ( "p   
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by ins]t+ aft] ! item    
relat+ to section #dh;,c ! foll[+ new   
item3  ,sec4 #dh;,d4 ,rural             
communications inve/m5t cr$it4  4  7d7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ aft] ! date ( ! enactm5t ( ?is  
,act4  #e4 ,increase & expansion (      
private activity bonds  7a7 ,increase 9 
volume cap ,section #adf7;d77#a7 ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ #abj p]c5t ( be=e ! great] (4 
7b7 ,exempt facility bonds = broadb&    

infra/ructure ,section #adb7;a7 ( su*   
,code is am5d$ by /rik+ or at ! end (   
p>agraph 7#ad71 by /rik+ ! p]iod at !   
end ( p>agraph 7#ae7 & ins]t+ 1 or1 & by
 add+ at ! end ! foll[+ new p>agraph3   
7#af7 infra/ructure = ! provision (     
broadb& int]net access s]vice4  4  7c7  
,effective dates  7#a7 ,increase 9      
volume cap ,! am5dm5t made by subsection
 7a7 %all apply to cal5d> ye>s aft]     
#bjai4  7#b7 ,exempt facility bonds =   
broadb& infra/ructure ,! am5dm5ts made  
by subsection 7b7 %all apply to bonds   
issu$ aft] ! date ( ! enactm5t ( ?is    
,act4