Bill Summary
The "Broadband Grant Tax Treatment Act" aims to amend the Internal Revenue Code to exclude certain broadband grants from being counted as gross income for tax purposes. This legislation is intended to encourage broadband deployment by ensuring that funds received through specific federal and state grant programs do not increase the tax burden on recipients.
Key provisions include:
1. **Exclusion from Gross Income**: Qualified broadband grants, which are defined to include various federal and state grants aimed at expanding broadband infrastructure, will not be included in the gross income of the recipient.
2. **Denial of Double Benefit**: The legislation stipulates that recipients cannot claim additional tax deductions or credits for expenses associated with these grants, ensuring that the tax benefits are not double-dipped.
3. **Definition of Qualified Broadband Grants**: The bill specifies what constitutes a qualified broadband grant, including grants from several programs established under the Infrastructure Investment and Jobs Act and other related initiatives.
4. **Effective Date**: The tax treatment will apply to grants received in taxable years ending after March 11, 2021.
Overall, this legislation is designed to support the expansion of broadband access by providing favorable tax treatment for grant recipients, thereby facilitating investments in broadband infrastructure.
Possible Impacts
The "Broadband Grant Tax Treatment Act" could affect people in several significant ways:
1. **Increased Access to Broadband Services**: By excluding certain broadband grants from gross income, this legislation can incentivize more individuals and organizations to apply for and receive funding for broadband deployment projects. This could lead to improved internet access in underserved areas, benefiting residents who may not have had reliable internet service before. Enhanced connectivity can facilitate remote work, online education, and access to information, ultimately improving quality of life and economic opportunities.
2. **Financial Relief for Recipients**: Individuals and entities receiving qualified broadband grants will not have to include the grant amounts in their gross income for tax purposes. This means they can use the full amount of the grant for broadband development without worrying about increased tax liabilities. This financial relief can encourage more investment in broadband infrastructure and lower the overall cost of projects aimed at improving internet access.
3. **Limitations on Double Dipping**: The legislation includes provisions to prevent recipients from claiming additional tax deductions or credits for expenses covered by the excluded grant amounts. This limitation ensures that the funds are used specifically for their intended purpose of broadband deployment, which could streamline the funding process and promote more efficient use of taxpayer dollars. However, it may also create a financial consideration for recipients, as they cannot claim certain benefits that could further reduce their overall costs.
Overall, the act could lead to a broader and more equitable distribution of broadband services, benefiting communities and individuals in various ways.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 674 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 674
To amend the Internal Revenue Code of 1986 to exclude certain broadband
grants from gross income.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 20, 2025
Mr. Moran (for himself, Mr. Warner, Mr. Sullivan, Mr. Kaine, Mr.
Tuberville, Mr. Kelly, Mrs. Capito, Mr. King, Mr. Wicker, Mr. Warnock,
Mr. Cramer, and Mrs. Fischer) introduced the following bill; which was
read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exclude certain broadband
grants from gross income.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Broadband Grant Tax Treatment Act''.
SEC. 2. CERTAIN GRANTS FOR BROADBAND EXCLUDED FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139I the following new subsection:
``SEC. 139J. CERTAIN BROADBAND GRANTS.
``(a) In General.--Gross income shall not include any qualified
broadband grant made for purposes of broadband deployment.
``(b) Denial of Double Benefit.--Notwithstanding any other
provision of this subtitle, no deduction or credit shall be allowed
for, or by reason of, any expenditure to the extent of the amount
excluded under subsection (a) for any qualified broadband grant which
was provided with respect to such expenditure. The adjusted basis of
any property shall be reduced by the amount excluded under subsection
(a) which was provided with respect to such property.
``(c) Qualified Broadband Grant.--For purposes of this section, the
term `qualified broadband grant' means--
``(1) any grant or subgrant received under the Broadband
Equity, Access, and Deployment Program established under
section 60102 of the Infrastructure Investment and Jobs Act,
``(2) any grant or subgrant received under the State
Digital Equity Capacity Grant Program established under section
60304 of such Act,
``(3) any grant received under the Digital Equity
Competitive Grant Program established under section 60305 of
such Act,
``(4) any grant received under section 60401 of such Act
(relating to middle mile grants),
``(5) any grant received--
``(A) under the broadband loan and grant pilot
program established by section 779 of Public Law 115-
141 under the Rural Electrification Act of 1936; and
``(B) from funds made available for such program
under the heading `Distance Learning, Telemedicine, and
Broadband Program' under the heading `Rural Utilities
Service' under title I of division J of the
Infrastructure Investment and Jobs Act,
``(6) any grant received from a State, territory, Tribal
government, or unit of local government to the extent such
grant was--
``(A) funded by amounts provided to the State or
local government under section 602, 603, or 604 of the
Social Security Act, and
``(B) provided for the stated purposes of making
investments in broadband infrastructure, or
``(7) any grant or subgrant received under section 905 of
division N of the Consolidated Appropriations Act, 2021.
``(d) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item related to section 139I the
following new item:
``Sec. 139J. Certain broadband grants.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received in taxable years ending after March 11, 2021.
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