Bipartisan legislation recently reintroduced in the U.S. House of Representatives would ensure funding for broadband deployment will not be considered taxable income.
The Broadband Grant Tax Treatment Act would amend the Internal Revenue Code to state that funding for broadband deployment from the Infrastructure Investment and Jobs Act and the American Rescue Plan is not taxable.
Currently, broadband deployment grants are factored into a company’s income and are subject to taxation. By making the grant award nontaxable, companies can use the entire amount for the intended purpose.
U.S. Reps. Mike Kelly (R-PA), Ways & Means Committee’s Subcommittee on Tax chairman, and Jimmy Panetta (D-CA) reintroduced the bill that was previously introduced in 2021 and 2023 in both the House and the Senate.
“This bill will work to make broadband internet access more affordable,” Kelly said. “It also ensures federal grant dollars, especially those made available to local governments through pandemic relief funding, will give constituents the best return on their investment. Internet connectivity brings together all Americans; it strengthens small businesses and e-commerce; and it expands educational opportunities for our children.”
The bill has the endorsement of the Rural Broadband Association, WTA Advocates for Rural Broadband, the Communications Infrastructure Contractors Association ACA Connects, and INCOMPAS.