The Broadband Grant Tax Treatment Act (BGTTA) is intended to amend the Internal Revenue Code and ensure funding for implementation of broadband is not considered taxable income.
Funding for grants is coming from the Infrastructure Investment and Jobs Act and the American Rescue Plan, according to a press release.
Introduced in the U.S. Senate Thursday by Sens. Mark Warner of Virginia, Jerry Moran of Kansas, and joined by Virginia’s Tim Kaine, Mississippi’s Roger Wicker, Rev. Raphael Warnock of Georgia and Shelley Moore Capito of West Virginia, the legislation will encourage broadband deployment.
Companies awarded grant funding for broadband deployment currently have their income taxed.
“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,” Warner, a member of the Senate Finance Committee and a primary author of the broadband provisions in the IIJA and ARP, said in the press release. “Taxing these broadband investments awards would be counter-productive, and could ultimately diminish efforts to give more Americans access to high-speed internet.”
Moran said that reliable, high-speed internet is crucial for Kansans to run their businesses, access telehealth and pursue an education.
“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,” Moran said in the press release.
According to Kaine, the COVID-19 pandemic underscored the need for everyone to have access to high-speed internet. “Ensuring that those investments won’t be taxed will help speed our progress toward that goal and expand access to online learning tools, remote work opportunities and telehealth services,” Kaine said.
Support AFP
Share
Rebecca Barnabi
