US Senate News:
Source: United States Senator for Kansas – Jerry Moran
Grants awarded to broadband providers for the purposes of broadband deployment are currently factored into a company’s income and taxed as income. This bipartisan legislation moves to exclude broadband deployment grants awarded through certain federal programs from an organization’s income, ensuring the entirety of federal dollars awarded to companies for the purpose of deploying broadband around the country can be used for that purpose, rather than making their way back to the government through taxes.
“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.”
“In order to fully reap the benefits of the Infrastructure Investment and Jobs Act and the American Rescue Plan, every dollar that was set aside to fund broadband expansion and deployment should be used for that purpose,” said Sen. Warner. “Taxing these broadband investments awards is counter-productive, and will ultimately diminish efforts to give more Americans access to high-speed internet.”
“Broadband investments that I worked hard at securing in the bipartisan infrastructure bill will continue to unlock limitless possibilities in terms of telehealth, education and small business opportunities, and importantly, allow Alaskans to connect with one another,” said Sen. Sullivan. “However, taxing these investments weakens our efforts. This legislation ensures that funds directed by Congress are spent on deploying broadband, furthering my goal of connecting every single Alaskan.”
“We made tremendous federal investments, including through the Bipartisan Infrastructure Law, to build broadband infrastructure and help ensure Virginians can access reliable, high-speed internet, which is critical for school, work, and other opportunities,” said Sen. Kaine. “This legislation would ensure every dollar is used for this purpose by preventing broadband deployment grants from being taxed.”
“Taxing federal broadband grants as gross income undermines the intent for broadband deployment programs,” said Sen. Capito. “The Broadband Grant Tax Treatment Act would help make sure this doesn’t happen so we can continue our efforts to close the digital divide in the areas that need broadband connectivity the most.”
“It certainly won’t surprise North Dakotans to know that reliable, high-speed broadband brings our country together in many respects,” said Sen. Cramer. “Much like our integrated highway system and anchored by our interstate highway system, it connects large, rural states like ours to essential services like telemedicine, educational opportunities, and it strengthens, probably more than anything, 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.”