WASHINGTON – U.S. Sens. Mark R. Warner (D-VA) and Jerry Moran (R-KS) led 10 of their colleagues in introducing legislation to amend the Internal Revenue Code to make certain that federal broadband deployment funding will not be considered taxable income.

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.

The senators were joined by Sens. Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Angus King (I-ME), Roger Wicker (R-MS), Raphael Warnock (D-GA), Kevin Cramer (R-ND) and Deb Fischer (R-NE) in introducing this legislation.    

“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.”

“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.”

“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.”

“Rural communities are the backbone of our nation, and we want to ensure that Americans living in these communities have access to high-speed internet,” said Sen. Tuberville. “Taxing broadband grants would undermine federal efforts to prioritize rural broadband expansion. I am proud to support this legislation so that those living in rural America have internet needed to run their businesses, access health care, and pursue educational opportunities.”

“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.”

“In today’s digital age, access to high-speed, affordable broadband is critical for Maine people to live, work and stay connected with one another,” said Sen. King. “Every single dollar that is invested in broadband deployment is vital, and shouldn’t be clawed back by the government at the cost of connecting an extra community street or neighborhood that needs it. I want to thank my colleagues for coming together to help close the digital divide in rural and urban communities in Maine and across the nation.”

“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.”

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