“(a) In general.—For purposes of section 46, the qualifying broadband project credit for any taxable year is an amount equal to 10 percent of the qualified investment for such taxable year with respect to any qualifying broadband project.

“(b) Qualified investment.—

“(1) IN GENERAL.—For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying broadband project—

“(A) (i) the construction, reconstruction, or erection of which is completed by the taxpayer, or

“(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and

“(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.

“(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED PROPERTY.—Rules similar to section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for purposes of this section.

“(3) CERTAIN QUALIFIED PROGRESS EXPENDITURES RULES MADE APPLICABLE.—Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.

“(c) Limitation.—

“(1) IN GENERAL.—The amount of the credit allowed under subsection (a) for any taxable year with respect to any qualifying broadband project shall not exceed the broadband credit dollar amount allocated to such project by a State under this section.

“(2) BROADBAND CREDIT DOLLAR AMOUNT.—

“(A) IN GENERAL.—The aggregate broadband credit dollar amount which may be allocated for any calendar year by any State shall not exceed the sum of—

“(i) $5,000,000, plus

“(ii) the amount that bears the same ratio to $2,500,000 as the population of individuals in the state residing in rural areas bears the population of individuals residing in rural areas in all States.

“(B) BROADBAND CREDIT DOLLAR AMOUNT CARRYFORWARD.—

“(i) IN GENERAL.—If the limitation under subparagraph (A) (determined without regard to this subparagraph) exceeds the aggregate amount of broadband credit dollar amounts allocated for any calendar year, such excess shall be treated as a broadband credit dollar amount carryforward and added to the limitation under such subparagraph for the 2 succeeding calendar years.

“(ii) ORDERING RULES.—Broadband credit dollar amount carryforwards shall be treated as used in the order in which they arose.

“(d) Qualifying broadband project.—For purposes of this section—

“(1) IN GENERAL.—The term ‘qualifying broadband project’ means any project which—

“(A) is designed solely to provide broadband service to 1 or more areas—

“(i) which are rural areas, and

“(ii) in which more than 50 percent of residential households do not have access to fixed, terrestrial broadband service which delivers at least 10 megabits per second downstream and at least 1 megabit service upstream,

“(B) results in gigabit capable Internet access to residential or commercial locations but only if at least 90 percent of the residential or commercial locations provided such access under the project are locations where, before the project, a broadband service provider—

“(i) did not provide service, or

“(ii) did not provide service which meets the minimum speed requirements described in subparagraph (A)(ii), and

“(C) is certified by the Secretary pursuant to paragraph (2).

“(2) QUALIFYING BROADBAND PROJECT CERTIFICATION PROGRAM.—

“(A) IN GENERAL.—Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Chairman of the Federal Communications Commission and the Secretary of Agriculture, shall establish a qualifying broadband project certification program to consider and award certifications for qualified investments eligible for credits under this section.

“(B) APPLICATION PERIOD.—

“(i) IN GENERAL.—Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during each annual application period.

“(ii) ANNUAL APPLICATION PERIOD.—For purposes of this paragraph, the term ‘annual application period’ means a 60-day period beginning each calendar year on the date determined by the Secretary.

“(C) NOMINATION.—A project may not be certified under this paragraph unless—

“(i) the project is nominated by a State or local government in a single, uniform application that is submitted to the Secretary by each State on behalf of projects nominated by the State and by its localities, and

“(ii) such State or local government provides written assurances within the application under clause (i) that the project satisfies the requirements of subparagraphs (A) and (B) of paragraph (1).

“(D) CERTIFICATION.—Not later than 60 days after the end of the annual application period, the Secretary, in consultation with the Chairman of the Federal Communications Commission and the Secretary of Agriculture, shall award certifications under this section.

“(e) Definitions.—For purposes of this section—

“(1) ELIGIBLE PROPERTY.—The term ‘eligible property’ means any property which is a part of a qualifying broadband project.

“(2) RURAL AREA.—The term ‘rural area’ has the meaning given such term under section 343(a)(13) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)), determined without regard to subparagraph (B) or (C) thereof.

“(3) STATE.—The term ‘State’ means the 50 States.”.