The Chamber supports HB 2289—telecommunications; broadband infrastructure; accelerated depreciation. This bill establishes an accelerated depreciation schedule for property tax purposes for broadband infrastructure in order to address a discrepancy in tax depreciation between centrally accessed telecommunication companies and new telecommunications companies.
In the 2011 Jobs Bill, centrally accessed companies were not allowed to take advantage of accelerated depreciation. The specific provision was left out of the legislation and allows significant inequities between companies that are centrally accessed and other competitive companies that are locally accessed.
The discrepancy allows new telecommunications companies to benefit from a significant cost savings that is currently not available to all telecommunications companies, some of which are large jobs providers in Arizona and active in communities across the state.
This inequity hurts competition in the state.
HB 2289 is a narrowly drafted bill and would allow accelerated depreciation only for centrally accessed telecommunications companies that invest in broadband infrastructure to receive the benefits its competitors currently have. With rapid changes in technology, telecommunications equipment no longer lasts decades— it is commonly replaced in five years or less.
The Chamber supports efforts to eliminate tax inequities and create tax uniformity. This change will aid in creating a level playing field between telecommunications companies in the state.