BOOST Act

Bill Number

H.R. 1020

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-02-05: Referred to the House Committee on Ways and Means.

Last Updated

2025-05-22T15:27:33Z

AI-Generated Summary

Purpose

The BOOST Act (Broadening Online Opportunities through Simple Technologies Act) aims to improve broadband internet access in rural and underserved areas by providing a financial incentive for individuals to purchase devices that enhance signal strength. It amends the Internal Revenue Code (IRC) of 1986 to introduce a refundable tax credit for qualified purchases, helping bridge the digital divide without requiring major infrastructure investments.

Key Provisions

• Tax Credit Amount: Eligible individuals can claim a refundable credit equal to 75% of qualified expenditures, up to a maximum of $400 in costs (resulting in a maximum credit of $300). The credit reduces tax owed and can result in a refund if it exceeds the tax liability.
• Qualified Expenditures: Covers costs for:
• Communications signal boosters (devices that amplify wireless or mobile data signals to improve broadband internet access).
• Customer premises equipment for satellite networks (e.g., dishes or receivers at the user's home).
• Ground station equipment for sending and receiving satellite transmissions.

These must be used in the taxpayer's principal residence (primary home) located in an "unserved area."

• Definition of Unserved Area: Areas eligible for funding under Phase 1 or Phase 2 of the Federal Communications Commission's (FCC) Rural Digital Opportunity Fund, as established in a 2020 FCC order. These are typically rural locations with limited or no broadband service.
• Eligibility Limits: The credit can only be claimed once per taxpayer, in a single taxable year. It applies to purchases made in taxable years beginning after December 31, 2025, and expires for expenditures after December 31, 2029.
• Administration: The IRS, in consultation with the FCC, will issue regulations and guidance. This includes a voluntary reporting program for sellers of the equipment to track sales in unserved areas.

Significant Changes to Existing Law

• Adds a new section (36C) to the IRC under subpart C of part IV, creating the "Broadband Internet Communications Signal Booster Credit" as the first such targeted incentive for signal-enhancing devices.
• Makes clerical updates to the IRC's table of sections and to U.S. Code Title 31 (Section 1324(b)) to include this credit in lists of refundable credits.
• No direct alterations to existing broadband programs like the FCC's Rural Digital Opportunity Fund, but it complements them by focusing on individual-level solutions rather than large-scale subsidies.

Potential Impacts

• On Citizens: Residents in unserved rural areas gain easier access to reliable broadband internet for work, education, and daily needs, potentially reducing isolation and promoting economic opportunities. The credit lowers the upfront cost of devices, making them more affordable for low-income households.
• On Government Agencies: The IRS will handle credit claims, increasing administrative workload and requiring coordination with the FCC for definitions and verification. The U.S. Treasury may face revenue losses from refunds, estimated in the low millions annually during the program's 4-year window (2026–2029), though this could be offset by broader digital inclusion benefits.
• On International Relations: No direct impact, as the bill focuses on domestic rural broadband enhancement without involving foreign entities or trade.

Main Stakeholders Affected

• Individuals and Households: Primarily taxpayers living in unserved rural areas who own principal residences and seek to improve home internet connectivity.
• Equipment Sellers and Manufacturers: Retailers and producers of signal boosters and satellite equipment, who may see increased demand and are encouraged to participate in voluntary sales reporting.
• Government Entities: The IRS (for tax administration), FCC (for technical guidance and area definitions), and rural communities benefiting indirectly through improved infrastructure access.
• Rural Broadband Providers: Satellite and wireless companies may experience indirect growth in user base as signals become more usable in underserved spots.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill's reliance on FCC definitions for "unserved areas" ensures consistency with existing federal broadband policy but may lead to disputes over eligibility if FCC rules change. The voluntary seller reporting program raises minor privacy considerations, though it avoids mandatory data collection.
• Constitutional: No apparent challenges; it aligns with Congress's taxing and spending powers under Article I, promoting general welfare through digital equity without infringing on individual rights.
• Political: Supports bipartisan goals of rural development and closing the urban-rural digital gap, potentially appealing to representatives from agricultural districts. It introduces a modest, time-limited fiscal incentive, avoiding long-term budget commitments, but could spark debates on the effectiveness of device-based solutions versus comprehensive infrastructure funding.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moolenaar, John R. [R-MI-2]

Cosponsors (5)

Rep. Bishop, Sanford D. [D-GA-2], Rep. Huizenga, Bill [R-MI-4], Rep. Panetta, Jimmy [D-CA-19], Rep. Neguse, Joe [D-CO-2], Rep. Vasquez, Gabe [D-NM-2]

Recent Actions

• 2025-02-05: Referred to the House Committee on Ways and Means.
• 2025-02-05: Introduced in House
• 2025-02-05: Introduced in House

Bill Versions

• Broadening Online Opportunities through Simple Technologies Act — issued 2025-02-05 — PDF (5 pages)