WASHINGTON-Sen. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, said on Monday he will offer an amendment to the Senate version of the tax-cut plan that will allow for expensing equipment used for deploying broadband facilities.
“Although many urban and surburban areas have access to broadband connections, many rural areas across the country and in Montana do not,” said Burns. “This places those rural communities at a disadvantage in regards to such things as economics, education and health care. This amendment will create a financial incentive to encourage broadband providers to extend their networks into rural communities and other underserved areas so we can help overcome that disadvantage.”
The Senate is expected to debate its version of the tax cut proposed by President George W. Bush this week. The House of Representatives passed its $550 billion version May 9.
Burns’ amendment will provide for 50-percent expensing for investments of current-generation technology-defined as delivering 1 Megabyte per second downstream and 128 kilobits per second upstream-and provide for 100-percent expensing for next generation technology-defined as at least 22 Mbps downstream and 5 Mbps upstream.
The expensing is valid for only one year and can be used for any technology including wireless, said Burns.
