U.S. Sens. Jerry Moran (R-KS) and Mark Warner (D-VA) introduced a bill in the senate that would ensure that federal broadband deployment funding will not be considered taxable income.
Currently, grants awarded to broadband providers for the purposes of broadband deployment are factored into a company’s income and taxed as income.
This legislation, S.674, moves to exclude broadband deployment grants awarded through certain federal programs from an organization’s income. This would ensure that the entirety of federal dollars awarded to companies for the purpose of deploying broadband can be used for that purpose.
“Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education,” Moran said. “This commonsense legislation would make certain federal grants provided for broadband deployment are not counted as taxable income to maximize the impact and success of these resources.”
Also sponsoring the bill among with Moran and Warner were Sens. Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Angus King (I-ME), Roger Wicker (R-MS), Raphael Warnock (D-GA), Kevin Cramer (R-ND) and Deb Fischer (R-NE).
“In order to fully reap the benefits of the Infrastructure Investment and Jobs Act and the American Rescue Plan, every dollar that was set aside to fund broadband expansion and deployment should be used for that purpose,” Warner said. “Taxing these broadband investments awards is counter-productive and will ultimately diminish efforts to give more Americans access to high-speed internet.”