Sens Warner, Moran Introduce Legislation to Prevent Taxation of Broadband Grants

Sens. Mark Warner (D-VA) and Jerry Moran (R-KS)—joined by Sens. Tim Kaine (D-VA), Roger Wicker (R-MS), Rev. Raphael Warnock (D-GA), and Shelley Moore Capito (R-WV)—introduced the Broadband Grant Tax Treatment Act (BGTTA). The legislation would 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 (ARPA) will not be considered taxable income. 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 kick in beginning 2023—unless Congress acts now to address the problem. Full text of the bill is available here.