How HR 2977 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill creates tax exclusions and credits related to rural incumbent local exchange carriers and broadband investment.

• Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986

  SEC. 139I. GAIN FROM SALE OF RURAL INCUMBENT LOCAL EXCHANGE CARRIER STOCK. (a) Exclusion.--Gross income shall not include gain from the sale or exchange of the entire interest in a wholly-owned rural incumbent local exchange carrier.

  Establishes a new section to exclude gains from the sale of stock of rural incumbent local exchange carriers from gross income.

• Section 338(a) of the Internal Revenue Code of 1986

  For purposes of this subtitle → For purposes of this subtitle (other than section 139I)

  Excludes section 139I from certain subsections regarding the treatment of corporate acquisitions.

• Part XII of subchapter B of chapter 1 of the Internal Revenue Code of 1986

  PART XII--RECAPTURE OF EXCLUSION OF GAIN FROM SALE OF RURAL INCUMBENT LOCAL EXCHANGE CARRIER STOCK.

  Establishes a new part regarding the recapture of the gain exclusion for sales of rural incumbent local exchange carriers.

• Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

  SEC. 48D. RURAL COMMUNICATIONS INVESTMENT CREDIT. (a) In General.-- (1) Credit amount.--For the purposes of section 46, in the case of a rural incumbent local exchange carrier, the rural communications investment credit for any taxable year is an amount equal to 30 percent of the amounts that are paid or incurred by such carrier during any qualified 1-year period ending in such taxable year to purchase, maintain, or improve property for the purpose of providing voice telephone service or broadband internet access service in an area described in section 139I(c)(2).

  Creates a new tax credit for rural incumbent local exchange carriers investing in infrastructure.

• Section 146(d)(1) of the Internal Revenue Code of 1986

  the greater of → 120 percent of the greater of

  Increases the volume cap for private activity bonds.

• Section 142(a) of the Internal Revenue Code of 1986

  or → , or

  Expands eligible purposes for exempt facility bonds to include broadband infrastructure.