WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) applauded introduction of the Broadband Grant Tax Treatment Act in the House of Representatives by U.S. Reps. Jimmy Panetta (D-CA-20), Mike Kelly (R-PA-16), Terri Sewell (D-AL-7), and Drew Ferguson (R-GA-3), all members of the House Ways & Means Committee. Sen. Warner introduced the Senate version of the legislation in September. 

“Ensuring that the investments that Congress has made to ensure Americans have access to high-speed internet have the maximum possible impact is a bipartisan – and now bicameral – goal,” said Sen. Warner, a member of the Finance Committee that oversees the nation’s tax code and a primary author of the broadband provisions in the Infrastructure Investment and Jobs Act (IIJA) and American Rescue Plan (ARP). “I appreciate Representatives Panetta and Kelly introducing this legislation in the House of Representatives, and I look forward to working with them to get it over the finish line before the end of the year.”

Since introduction on September 29, 2022, six additional senators – Sens. Kevin Cramer (R-ND), Kyrsten Sinema (D-AZ), Angus King (I-ME), Tammy Baldwin (D-WI), Ted Cruz (R-TX), and Deb Fischer (R-NE) – have signed on to the legislation which would prevent critical broadband investments from counting as taxable income for grant recipients. They join original co-sponsors Sens. Jerry Moran (R-KS), Tim Kaine (D-VA), Roger Wicker (R-MS), Rev. Raphael Warnock (D-GA), and Shelley Moore Capito (R-WV),  

Already supported by NTCA – The Rural Broadband Association and WTA - Advocates for Rural Broadband, the legislation has also received several additional endorsements since introduction.

"We appreciate the leadership of Senators Warner and Moran for their efforts to eliminate the tax on broadband grants," said Brandon Heiner, USTelecom Senior Vice President of Government Affairs. "With an eye toward 100 percent connectivity, Congress made a historic investment in the broadband grant program in 2021. However, requiring grant recipients to return as much as 20 percent of those grants in the form of taxes jeopardizes our shared goal of universal connectivity. It is vital that Congress move to eliminate this tax, as America’s broadband providers carefully plan and prepare to allocate resources to connect as many Americans as possible."

“CTIA applauds Senators Warner and Moran for their work to protect investments that strengthen and expand broadband infrastructure," said CTIA Senior Vice President, Government Affairs, Kelly Cole. "Ensuring grants can be used for their fullest purpose to deploy broadband to unserved and underserved communities is critical to bringing the benefits of connectivity to all Americans.”

“I appreciate Senators Warner and Kaine introducing legislation to prevent the taxation of broadband grants," said Bill Franklin, CEO, Scott County Telephone Cooperative. "One of the requirements for these grants is financial sustainability. This tax burden would make many rural unserved and underserved areas ineligible due to their inability to meet the financial sustainability requirement. I appreciate Senator Warner’s business knowledge and experience to recognize that fact. This legislation will ensure many rural Virginians and rural households across the US get access to reliable and robust broadband!”

Full text of the bill is available here.  

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