Shenango Valley News

U.S. Representatives Mike Kelly and Jimmy Panetta have reintroduced the Broadband Grant Tax Treatment Act, aiming to amend the Internal Revenue Code. The legislation seeks to ensure that funds allocated for broadband deployment under the Infrastructure Investment and Jobs Act and the American Rescue Plan are not treated as taxable income.

Rep. Kelly stated, "This bill will work to make broadband internet access more affordable. It also ensures federal grant dollars, especially those made available to local governments through pandemic relief funding, will give constituents the best return on their investment."

Rep. Panetta added, "The Broadband Grant Tax Treatment Act will exempt these grants from federal taxation, ensuring that every dollar goes toward closing the digital divide."

Support for this measure comes from various industry stakeholders. Shirley Bloomfield of NTCA-The Rural Broadband Association expressed appreciation for Congress's commitment to connecting all Americans. She noted that taxing these funds requires providers to return a portion of their award to the government.

Grant Spellmeyer of ACA Connects highlighted that this legislation ensures all broadband grants contribute directly to closing the digital divide. Chip Pickering of INCOMPAS emphasized public-private partnerships' role in achieving connectivity goals.

Derrick Owens from WTA - Advocates for Rural Broadband praised the bipartisan effort to relieve small providers from substantial tax burdens when accepting government grants. Todd Schlekeway of NATE: The Communications Infrastructure Contractors Association reiterated support for ensuring federal dollars are used solely for connectivity purposes.

Currently, grants awarded for broadband deployment are included in a company’s taxable income. This proposed legislation aims to exclude such grants from taxation, allowing full utilization of funds towards expanding broadband infrastructure across the United States.