Funding for broadband deployment grants made under several enacted federal laws would not be considered taxable income under bipartisan, bicameral legislation introduced on Feb. 9 by U.S. Rep. Mike Kelly (R-PA) and U.S. Sen. Jerry Moran (R-KS).
“Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education,” Sen. Moran said. “This common-sense 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.”
Currently, grants awarded for broadband deployment are factored into a company’s income and are subject to taxation. Under the Broadband Grant Tax Treatment Act, H.R. 889/S. 341, the Internal Revenue Code would be amended to exclude broadband grants from gross income if the grants were awarded through the Infrastructure Investment and Jobs Act, the American Rescue Plan, and the Tribal Broadband Connectivity Fund.
Rep. Kelly sponsored H.R. 889 with five original cosponsors, including U.S. Reps. Buddy Carter (R-GA) and Jimmy Panetta (D-CA). Sen. Moran signed on as the lead original cosponsor of S. 341, which is sponsored by U.S. Sen. Mark Warner (D-VA) and includes 15 other original cosponsors, including U.S. Sens. Roger Wicker (R-MS), Shelley Moore Capito (R-WV), and Lisa Murkowski (R-AK).
“More than 800,000 Pennsylvanians, including 520,000 rural Pennsylvanians, lack quality broadband internet access,” said Rep. Kelly. “This bill will not only help to change that, but it will also work to make access more affordable.”
The measure also would ensure that federal grant dollars, especially those made available to local governments through pandemic relief funding, provide constituents the best return on their investment, the congressman added.
“Internet connectivity brings together all Americans; it strengthens small businesses and e-commerce; and it expands educational opportunities for our children,” Rep. Kelly said. “This legislation allows for existing grant funding to be spent as effectively as possible to help all American families from farm communities in California to the shores of the Great Lakes in Pennsylvania.”
The Competitive Carriers Association, USTelecom, CTIA, INCOMPAS, WTA – Advocates for Rural Broadband, NTCA – The Rural Broadband Association, and WISPA – Broadband Without Boundaries endorsed the bill.