Broadband Grant Tax Treatment Act

Tax rules for broadband grant recipients

If enacted, recipients of certain broadband deployment grants would not include those grants in taxable income. Covered programs would include BEAD, Digital Equity, Middle Mile, some Rural Electrification pilot grants, certain state, Tribal, or local broadband grants funded by federal relief, and a 2021 broadband program. You would not be able to deduct expenses or claim credits for costs paid with the excluded grant money, and you would have to reduce the tax basis of property bought with it. Treasury would issue rules to explain details. This would apply to amounts received in tax years ending after March 11, 2023.