Reps. Kelly (R-PA), Panetta (D-CA) Introduce Bipartisan Legislation to Exempt Broadband Grants from Taxation

Representatives Mike Kelly (R-PA) and Jimmy Panetta (D-CA), joined by Reps. Terri Sewell (D-AL) and Drew Ferguson (R-GA), authored and introduced H.R. 9449, The Broadband Grant Tax Treatment Act, bipartisan legislation to amend the Internal Revenue Code to ensure that funding directed for the implementation of broadband from the Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan Act (ARPA) will not be considered taxable income. This bill was introduced in the Senate by Senators Mark Warner (D-VA) and Jerry Moran (R-KS) and joined by Sens. Tim Kaine (D-VA), Roger Wicker (R-MS), Rev. Raphael Warnock (D-GA), and Shelley Moore Capito (R-WV). Grants awarded to industry for the purposes of broadband deployment are currently factored into a company’s income and will soon be subjected to additional taxes due to scheduled changes to the corporate tax code that begin next year.  In response to this issue, this bipartisan legislation excludes broadband deployment grants awarded through the IIJA and ARP from an organization’s income, ensuring the entirety of federal dollars awarded to companies for the purpose of deploying broadband around the country are used to connect Americans.