Bill May Exempt Companies from Taxes on Broadband Infrastructure Grants

By Leslie Stimson, Inside Towers Washington Bureau Chief

A bipartisan group of Senators introduced the Broadband Grant Tax Treatment Act. If passed, the measure would change the Internal Revenue Code to ensure that funding directed for broadband implementation from the Infrastructure Law and the American Rescue Plan 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 next year – unless Congress acts now to address the problem, according to the lawmakers.  That ensures all federal dollars awarded to companies for the purpose of deploying broadband can be used wholly for that purpose, rather than making their way back to the government through taxes, say bill sponsors Sens. Mark Warner (D-VA) and Jerry Moran (R-KS). Co-sponsors are: Tim Kaine (D-VA), Roger Wicker (R-MS), Rev. Raphael Warnock (D-GA), and Shelley Moore Capito (R-WV). Continue Reading