Broadband Grant Tax Treatment Act
House Committee Reviews Bill to Make Federal Broadband Grants Tax-Free for Recipients
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Makes certain broadband buildout grants not count as taxable income for the recipient.
- Covers several federal broadband and digital equity grant programs, plus some state, local, and Tribal broadband grants that use certain federal funds.
- Aims to stretch grant dollars further for building internet infrastructure, since recipients would not owe federal income tax just for receiving the grant.
- Limits “double-dipping”: if you exclude the grant from income, you generally can’t also claim tax deductions or credits for the same spending, and the tax basis of property bought with the grant is reduced.
- Applies retroactively to amounts received in tax years ending after March 11, 2023, which could affect past tax filings for some recipients.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
5 articlesSenate pushes for tax free BEAD grants: Why it matters
U.S. senators reintroduced the Broadband Grant Tax Treatment Act to ensure federal broadband deployment funding is not considered taxable income. Currently, grants are subject to a 21% corporate tax rate, which industry experts warn could significantly reduce the reach of infrastructure projects.
Bipartisan Bill Exempting Broadband Grants Reintroduced
The Broadband Grant Tax Treatment Act (BGTTA) was introduced to the 118th Congress to amend the Internal Revenue Code. The bill seeks to exclude qualified broadband grants from taxable income, addressing changes made by the 2017 Tax Cuts and Jobs Act that rendered such grants taxable.
Broadband industry pushes Congress for tax exemption on grants
Industry groups are urging lawmakers to pass the Broadband Grant Tax Treatment Act, warning that a 2017 tax law risks forcing grant recipients to return up to 21 percent of their funding to the federal government, undermining goals for ubiquitous high-speed internet deployment.
Source Information
Document Type
Congressional Bill
Official Title
Broadband Grant Tax Treatment Act
Data Sources
Sponsor
Cosponsors
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