The BOOST Act would create a new refundable individual tax credit, available for tax years starting after 2025 and ending after 2029, to help households in areas with inadequate broadband access purchase communications signal boosters and related equipment. The credit equals 75% of qualified booster expenditures, up to a maximum credit of $300 per taxpayer per taxable year (based on a $400 expenditure cap). Eligible purchases include communications signal boosters, customer premises equipment for satellite networks, and ground station equipment for satellite communications, but only when used in the taxpayer’s principal residence located in an unserved area (defined by FCC Rural Digital Opportunity Fund criteria). Taxpayers may elect to apply this credit for only one taxable year in their lifetime. The bill also requires federal regulators to issue regulations and guidance and to set up a voluntary reporting program for sellers operating in unserved areas. The credit would sunset for expenditures paid in taxable years beginning after December 31, 2029.
Key Points
- 1A refundable individual tax credit of 75% of qualified signal booster expenditures, limited to $400 of expenditures per year, for a maximum credit of $300 per taxpayer per year.
- 2Qualified expenditures cover:
- 3- Communications signal boosters
- 4- Customer premises equipment for use with satellite networks
- 5- Ground station equipment to send/receive satellite transmissions
- 6- All must be used at the taxpayer’s principal residence in an unserved area
- 7An unserved area is defined by FCC funding criteria under the Rural Digital Opportunity Fund (Phase 1 or Phase 2) as described in FCC orders.
- 8An election to apply the credit may be made in only one taxable year; if the taxpayer has elected in a prior year, they may not elect again in a later year.
- 9Effective date and sunset: applies to taxable years beginning after December 31, 2025; ends for amounts paid or incurred in taxable years beginning after December 31, 2029.
- 10Regulatory framework: the Secretary, with input from the FCC, will issue regulations and guidance, including a voluntary reporting program for sellers of boosters and related equipment in unserved areas.
- 11Administrative changes: minor clerical and conforming amendments to the Internal Revenue Code and related provisions.