• Home
• About Jay
• Constituent Services
• Press Room
• Photo Gallery
• Explore WV
• Visit DC
• Students & Kids
• Contact

Issues

• Aviation
• Children & Families
• Coal
• Education
• Energy
• Health Care
• Jobs & Economy
• National Security
• Seniors
• Steel
• Veterans

WV H1N1 Resources

Health Care Updates

Health Care Reform Bill

West Virginia Appropriations Requests

 

 

 

Press Room: Press Releases

March 21, 2000

ROCKEFELLER AND SNOWE CALL FOR TAX CREDIT TO EXPAND BROADBAND SERVICES

WASHINGTON, D.C. —At a conference of the United States Telephone Association, U.S. Senator Jay Rockefeller (D-WV) today announced that he and Senator Olympia Snowe (R- ME) will soon introduce legislation to create a tax credit for expanding broadband telecommunications services in rural areas. The Senators said that the bipartisan Rural Telecommunications Modernization Act will ensure that all parts of the country have access to the most vital and modern services needed to succeed in the New Economy.

     Rockefeller commented, "The world of communications is changing so rapidly and in so many ways. These changes are not just affecting the way the world communicates — they are fundamentally changing the make-up of our economy. Unfortunately, rural areas are at a significant technological disadvantage. There is a tremendous and potentially very dangerous disparity between broadband access in rural and urban America."

     "We simply cannot afford to have a nation divided between technological haves and have nots," said Snowe. "While efforts are being made to ensure broadband services are available in all regions – both urban and rural – the simple fact is that these services, which are integral to being a part of our nation's technological and telecommunications infrastructure, are being deployed more rapidly and ubiquitously in urban areas. We simply cannot afford to allow this discrepancy to continue."

     "Our legislation will directly attack the broadband disparity," Rockefeller said. "Using a focused, affordable tax credit, our plan will give companies the incentive to build broadband facilities in rural areas. Our proposal should be broadly supported because it is technology neutral, benefits incumbent companies as well as competitors, and most importantly, directly addresses the higher cost of investing in rural areas."

     The Rural Telecommunications Modernization Act will offer any company that invests in broadband facilities in rural areas a ten percent tax credit per year for three years. Companies willing to invest in the most powerful forms of broadband facilities will receive an even larger tax credit. To make sure the credit is focused on the need that actually exists, it will only be available for certain types of investments. Further details will be available when the bill is introduced, but some highlights include:

• First, investments must be for "broadband local access facilities." These facilities provide the equipment needed for broadband capability. This includes fiber optics, DSL equipment, wireless enhancements, and cable TV network upgrades.
• Second, the credit is restricted to investments needed for "high-speed broadband telecommunications services." This means that only powerful broadband services are covered. Companies cannot claim that "narrow-band" services qualify, while companies that invest in cutting edge technology will receive an enhanced credit.
• Finally, only investments in rural areas qualify. It is important to focus this credit where the help is needed most and, in doing so, make sure that costs are kept reasonable. The credit is restricted to investments in areas that are more than 15 miles from any town with more than 25,000 people, and that are not within a county with a population density of more than 500 people per square mile.

Rockefeller continued, "The New Economy, driven by exciting changes in technology and innovative entrepreneurs and companies, is changing the way we live and do business. However, to achieve the benefits of this change, there is no question that we must invest in broadband services for all parts of our country. Only then can we be absolutely certain that our nation — all 50 states of our nation — will remain competitive in a quickly changing world. Ultimately, denying rural Americans a chance to participate in the New Economy will not just hurt our small cities and towns, it will hold back our entire national economy."

Snowe said, "The legislation we will soon introduce will ensure that all regions of our nation will be able to share in the opportunities and benefits provided by broadband. From small businesses seeking to forge a rapid link to other businesses and customers around the globe, to individual consumers who want to download information and products from the web in seconds rather than hours, the benefits provided by broadband services are countless."

"We must ensure that small businesses and consumers in rural regions and towns have access to these services in a timely manner if we are to form a seamless web of opportunity for all of our nation's citizens," Snowe said.