[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1023 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 1023
To provide tax credits to low- to moderate-income individuals for
certain computer and education costs, to direct the Federal
Communications Commission to modify the requirements for the Lifeline
program to provide increased support, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 25, 2021
Mr. Durbin (for himself and Mr. Booker) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide tax credits to low- to moderate-income individuals for
certain computer and education costs, to direct the Federal
Communications Commission to modify the requirements for the Lifeline
program to provide increased support, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Computer and Internet Access Equity
Act''.
SEC. 2. INCREASED LIFELINE SUPPORT.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(2) Terms defined in regulations.--The terms defined in
section 54.400 of title 47, Code of Federal Regulations (or any
successor regulation), have the meanings given those terms in
that section.
(b) Regulations.--Not later than 14 days after the date of
enactment of this Act, the Commission shall promulgate regulations to
modify the requirements for the Lifeline program set forth in subpart E
of part 54 of title 47, Code of Federal Regulations (as in effect on
the date of enactment of this Act) to provide for the following:
(1) The amount of Lifeline support that a provider of
Lifeline service may receive for providing such service to each
qualifying low-income consumer shall be increased by the lesser
of--
(A) $83.33 per month; or
(B) the amount needed to make the amount of
Lifeline support received by the provider equal to the
cost of providing such service, except that such cost
may not exceed the cost to the provider of providing an
equivalent level of voice telephony service or
broadband internet access service (as applicable) to a
consumer who does not receive Lifeline service.
(2) The percentage of the Federal Poverty Guidelines (as
specified in section 54.409(a)(1) of title 47, Code of Federal
Regulations) at or below which a consumer's household income
must be in order for the consumer to constitute a qualifying
low-income consumer on the basis of income shall be increased
to 435 percent.
(3) A provider of broadband internet access service shall
not be required to be designated as an eligible
telecommunications carrier under section 214(e) of the
Communications Act of 1934 (47 U.S.C. 214(e)) in order to
receive Lifeline support for providing such service to a
qualifying low-income consumer.
(c) Duration.--The modifications made by the regulations
promulgated under subsection (b) shall cease to have any force or
effect on the date that is 12 years after the date on which the
regulations are promulgated.
(d) Consumer Protections.--
(1) In general.--A provider of broadband internet access
service that receives Lifeline support for providing such
service to a qualified low-income consumer--
(A) shall provide such service to the consumer at a
minimum speed of 25 megabits per second for downloads
and 3 megabits per second for uploads, which minimum
speed shall be reevaluated and, if appropriate,
increased by the Commission not less frequently than
once every 3 years;
(B) shall provide a level of customer service to
the consumer that is comparable to the customer service
that the provider provides to consumers of broadband
internet access service who do not receive Lifeline
service;
(C) shall offer such service to each qualified low-
income consumer in the designated service area of the
provider; and
(D)(i) shall advertise the availability of such
service and the charges therefore using media of
general distribution throughout the designated service
area of the provider to increase awareness among
consumers (including non-English speaking consumers)
that they may be eligible for such service; and
(ii) may partner with State agencies responsible
for the provision of social assistance and service
programs in conducting advertising under clause (i).
(2) Designated service area.--A State commission or the
Commission, as applicable, shall establish a designated service
area for a provider of broadband internet access service
described in paragraph (1) for purposes of that paragraph in
the same manner as the State commission or Commission
establishes a designated service area for a common carrier
under paragraph (5) or (6), as applicable, of section 214(e) of
the Communications Act of 1934 (47 U.S.C. 214(e)).
SEC. 3. INTERNET EDUCATION AND TRAINING GRANT PROGRAM.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(2) Community-based organization.--The term ``community-
based organization'' has the meaning given the term in section
3 of the Workforce Innovation and Opportunity Act (29 U.S.C.
3102).
(3) Digital literacy.--The term ``digital literacy'' means
the skills associated with using technology.
(4) Eligible entity.--The term ``eligible entity'' means--
(A) a nonprofit organization;
(B) a not-for-profit social welfare organization;
or
(C) a community-based organization.
(5) Federal poverty guidelines.--The term ``Federal Poverty
Guidelines'' means the Federal Poverty Guidelines used for
purposes of section 54.409(a)(1) of title 47, Code of Federal
Regulations (or any successor regulation).
(6) Household.--The term ``household'' has the meaning
given the term in section 54.400 of title 47, Code of Federal
Regulations (or any successor regulation).
(7) Income.--The term ``income'' has the meaning given the
term in section 54.400 of title 47, Code of Federal Regulations
(or any successor regulation).
(8) Nonprofit organization.--The term ``nonprofit
organization'' means an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code.
(9) Not-for-profit social welfare organization.--The term
``not-for-profit social welfare organization'' means an
organization described in section 501(c)(4) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code.
(b) Grants Authorized.--Not later than 100 days after the date of
enactment of this Act, the Commission shall establish a program to make
grants on a competitive basis to eligible entities to develop and carry
out an internet safety education or training program.
(c) Applications.--An eligible entity that wishes to receive a
grant under this section shall submit to the Commission an application
at such time, in such manner, and containing such information as the
Commission may require.
(d) Use of Funds.--An eligible entity that receives a grant under
this section shall use grant funds to--
(1) develop a program to provide internet education and
training, which may address cyberbullying, online privacy,
cybersecurity, and digital literacy, to individuals living in
households with an income at or below 435 percent of the
Federal Poverty Guidelines for households of the applicable
size; and
(2) provide such education or training to such individuals
through such program.
(e) Reports.--
(1) Reports to commission.--Not later than 3 years after
the date on which an eligible entity receives a grant under
this section, the eligible entity shall publish and submit to
the Commission a report that--
(A) describes the use of the grant by the eligible
entity, including the number of individuals served by
the eligible entity using grant funds;
(B) describes the progress of the eligible entity
toward fulfilling the objectives for which the grant
was awarded; and
(C) includes any additional information required by
the Commission.
(2) Report to congress.--Not later than 5 years after the
date of enactment of this Act, the Commission shall publish and
submit to Congress a report that--
(A) summarizes the data from the reports that the
Commission has received under paragraph (1); and
(B) assesses the effectiveness and cost-
effectiveness of the grant program established under
this section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.
SEC. 4. CREDIT FOR COMPUTER COSTS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36C. CREDIT FOR COMPUTER COSTS.
``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by this subtitle
for the taxable year an amount equal the lesser of--
``(1) the amount of qualified computer costs paid or
incurred by the taxpayer during such taxable year,
``(2) $2,000 ($4,000 in the case of a joint return), or
``(3) an amount equal to $10,000 ($20,000 in the case of a
joint return) minus the sum of any credits allowed to the
taxpayer under this section for any preceding taxable year.
``(b) Qualified Computer Costs.--For purposes of this section, the
term `qualified computer costs' means amounts paid or incurred for
computers, printers, and other education-related technology.
``(c) Limitation Based on Adjusted Gross Income.--With respect to
any taxable year, the $2,000 amount (or, in the case of a joint return,
$4,000 amount) in subsection (a)(2) shall be reduced by an amount equal
to 5 percent of so much of the taxpayer's adjusted gross income for
such taxable year as exceeds--
``(1) $72,000 in the case of a joint return,
``(2) $54,000 in the case of a head of household, and
``(3) $36,000 in the case of a taxpayer not described in
paragraph (1) or (2).
``(d) Eligible Individual.--The term `eligible individual' means
any individual other than--
``(1) any nonresident alien individual,
``(2) any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable year
beginning in the calendar year in which the individual's
taxable year begins, and
``(3) an estate or trust.
``(e) Application of Section.--This section shall only apply to
qualified computer costs incurred by the taxpayer after December 31,
2020, and before January 1, 2033.''.
(b) Advance Payment of Credit.--
(1) In general.--Chapter 77 of the Internal Revenue Code of
1986, as amended by section 9611(b) of the American Rescue Plan
Act of 2021 (Public Law 117-2), is amended by inserting after
section 7527A the following new section:
``SEC. 7527B. ADVANCE PAYMENT OF CREDIT FOR COMPUTER COSTS.
``(a) In General.--As soon as practicable after the date of the
enactment of this section, the Secretary shall establish a program for
making advance payments of the credit allowed under section 36C
(determined without regard to subsection (e) of such section), on such
basis as the Secretary determines to be administratively feasible, to
taxpayers determined to be eligible for advance payment of such credit.
``(b) Limitation.--
``(1) In general.--The Secretary may make payments under
subsection (a) only to the extent that the total amount of such
payments made to any taxpayer during the taxable year does not
exceed the amount of the credit determined under subsection (a)
of section 36C, as determined based on application of
subsection (c) of such section using the adjusted gross income
of the taxpayer for the most recent taxable year for which a
return has been filed during any of the preceding 3 taxable
years.
``(2) Non-filers.--In the case of any taxpayer who has not
filed a return during the period described in paragraph (1),
such paragraph shall be applied without regard to subsection
(c) of section 36C.''.
(2) Reconciliation of credit and advance credit.--Section
36C of such Code, as added by subsection (a), is amended--
(A) by redesignating subsection (e) as subsection
(f); and
(B) by inserting after subsection (d) the following
new subsection:
``(e) Reconciliation of Credit and Advance Credit.--
``(1) In general.--The amount of the credit allowed under
this section for any taxable year shall be reduced (but not
below zero) by the aggregate amount of any advance payments of
such credit under section 7527B for such taxable year.
``(2) Excess advance payments.--
``(A) In general.--If the aggregate amount of
advance payments under section 7527B for the taxable
year exceeds the amount of the credit allowed under
this section for such taxable year (determined without
regard to paragraph (1)), the tax imposed by this
chapter for such taxable year shall be increased by the
amount of such excess.
``(B) Return requirement.--If the tax imposed by
this chapter for the taxable year is increased under
this paragraph, the taxpayer shall, notwithstanding
section 6012, be required to file a return with respect
to the taxes imposed under this subtitle.''.
(c) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended--
(A) by inserting ``36C,'' after ``36B,'', and
(B) by striking ``and 7527A'' and inserting
``7527A, and 7527B''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended--
(A) by inserting ``36C,'' after ``36B,'', and
(B) by striking ``or 7527A'' and inserting ``7527A,
or 7527B''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36B
the following new item:
``Sec. 36C. Credit for computer costs.''.
(4) The table of sections for chapter 77 of such Code is
amended by inserting after the item relating to section 7527A
the following new item:
``Sec. 7527B. Advance payment of credit for computer costs.''.
(d) Public Awareness Campaign.--The Secretary of the Treasury (or
the Secretary's delegate) shall conduct a public awareness campaign, in
coordination with the Commissioner of Social Security, the Secretary of
Veterans Affairs, and the heads of other relevant Federal and State
agencies, to provide information to the public (including non-English
speaking populations) regarding the availability of the credit allowed
under section 36C of the Internal Revenue Code of 1986 and advance
payment of such credit pursuant to section 7527B of such Code (as added
by this section).
(e) Effective Date.--The amendments made by this section shall
apply to costs incurred in taxable years beginning after December 31,
2020.
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