The Broadband Deployment Acceleration Act (H.R. 1818), introduced by Rep. Doris Matsui (D-Calif.), would have amended the Internal Revenue Code to permit taxpayers to deduct certain broadband expenditures, such as installation and connection costs for subscribers in rural or underserved areas.

The bill also sought to create tax incentives for mutual or cooperative telephone companies by allowing them to reduce their unrelated business taxable income in any year by the amount of their qualified broadband expenditures. It would have forbidden federal or state agencies from enacting regulations and rate-making procedures that would eliminate or reduce the broadband expense deduction provided by this legislation.