Summary

Creates a new individual tax credit that covers 75% of qualifying purchases of signal boosters and certain consumer satellite equipment, up to $400 per taxpayer. The credit applies once per taxpayer for one taxable year, targets devices used in defined unserved or underserved areas, requires Treasury to adopt rules in consultation with the FCC (including a voluntary seller-reporting program), and sunsets for purchases made in tax years beginning after December 31, 2029.

Key Points

• Creates a new individual tax credit equal to 75% of qualifying purchases of signal boosters and certain consumer satellite equipment.
• Credit is capped at $400 per taxpayer and may be claimed in only one taxable year per taxpayer.
• Eligibility is limited to devices used in defined unserved or underserved areas; Treasury will define technical eligibility in consultation with the FCC.
• Treasury must set implementing rules and establish a voluntary seller-reporting program to document sales in unserved areas.
• The credit sunsets for amounts paid in tax years beginning after December 31, 2029.
• The credit reduces individual income tax liability; it is administered through Treasury rules and IRS processes.
• Sellers and broadband/satellite providers may be asked to participate in voluntary reporting to support verification.
• Take-up and actual budget cost depend on Treasury/FCC definitions, taxpayer awareness, and seller participation.

Categories & Tags