Iowa Broadband Legislation Rolls Ahead

Iowa is one step closer to expanded broadband connectivity in the state. House File 641, Gov Terry Branstad’s (R-IA) “Connect Every Acre” initiative, passed the Iowa House of Representatives by a 90-5 vote on April 21. The measure, which uses a litany of income and property tax breaks to incentivize the build-out of broadband networks in the state’s underserved areas, now must be ratified in the Senate. This is the second time around for Branstad’s proposal. It was initially defeated in the House during the 2014 legislative session over concerns that the tax breaks were too high and skepticism that providers would take on projects in Iowa’s rural areas. The legislation was re-introduced on Jan. 13, during Branstad’s “Condition of the State” address.

Jimmy Centers, spokesman for Branstad, said that the issues have been addressed, noting that the current legislation actually extends the tax credit length by seven additional years in comparison to the original proposal. With the landslide vote in favor of HF 641 in the House, the governor is confident in the bill’s prospects in the Senate. Broadband installations that qualify under HF 641 are exempt from property tax for a period of 10 years. To qualify, projects must take place within a targeted service area defined by the U.S. Census Bureau where download speeds of 25 Mbps or more and upload speeds of 3 Mbps or more are not currently available.