Gigabit Opportunity Act Would Use Tax Breaks to Spur Broadband Deployment

The Gigabit Opportunity Act, also known as the GO Act, aims to spur gigabit broadband deployment by using a range of tax breaks.

Sen Shelley Moore Capito (R–WV) said the GO Act “gives states flexibility, streamlines existing regulations and eliminates barriers to investment so we can better connect our low-income and rural communities.” The act calls for state governors to establish Gigabit Opportunity Zones that would be eligible for tax breaks including enabling companies to immediately expense the cost of gigabit-capable equipment and temporarily deferring capital gains for broadband investments and upgrades. It also directs the FCC to release a framework that encourages states, counties and cities to voluntarily adopt streamlined broadband laws, with which Gigabit Opportunity Zones would have to comply.

If this sounds familiar, that’s because the Gigabit Opportunity Act is based, in part, on a Gigabit Opportunity Zone proposal made by FCC Chairman Ajit Pai prior to his chairmanship. Not surprisingly, Chairman Pai issued a statement in support of the proposed legislation. The Gigabit Opportunity Act, he said, is “an important step toward closing the digital divide.” He added that “[w]ith targeted tax incentives and regulatory streamlining, the GO Act aims to remove the major barriers holding back internet access in economically challenged areas.” Some stakeholders argue, however, that while removing regulatory barriers and providing tax incentives can help spur broadband deployment, they are not a complete solution.