WASHINGTON, D.C. – Under existing law, federal broadband deployment grants are subject to federal taxation, limiting the funds available for recipients to use.
U.S. Senator Kevin Cramer (R-ND) joined U.S. Senator Jerry Moran (R-KS) in introducing the Broadband Grant Tax Treatment Act to ensure federal broadband deployment grants are excluded from taxable income, allowing recipients to maximize investments in broadband expansion.
“It certainly won’t surprise North Dakotans to know that reliable, high-speed broadband brings our country together in many respects,” said Cramer. “Much like our integrated highway system, broadband connects large, rural states like ours to essential services like telemedicine, educational opportunities, and strengthens our small businesses with e-commerce opportunities. By making every dollar for broadband expansion count, this bill really does pave the way for a much more connected future.”
“Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education,” said Sen. Moran. “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.”
The bill is consistent with longstanding efforts to promote broadband accessibility in underserved communities and has received strong support from industry leaders, including USTelecom – The Broadband Association; the Competitive Carriers Association; CTIA – The Wireless Association; INCOMPAS – The Internet and Competitive Networks Association; WTA – Advocates for Rural Broadband; NTCA – The Rural Broadband Association; and the Wireless Internet Service Providers Association.
Cosponsors of the Broadband Grant Tax Treatment Act include U.S. Senators 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), and Deb Fischer (R-NE).
Click here for bill text.
