Broadband Grant Tax Treatment Act

Tax rules for broadband grant recipients

This bill would exclude certain federal and related broadband grants from taxable income. If your business, local government, tribe, or nonprofit got a qualified broadband grant, you would not include that grant as gross income for amounts received in taxable years ending after March 11, 2021. You could not claim a tax deduction or credit for spending paid with the excluded grant amount. The tax basis of any property would be reduced by the excluded grant amount tied to that property. The exclusion would apply to grants and subgrants from the IIJA broadband and digital equity programs, certain Rural Utilities Service pilot funds, State or local grants funded by federal digital-equity or broadband funds, and grants under the Consolidated Appropriations Act, 2021. The Treasury would issue regulations or guidance to implement these rules.