A bipartisan group of lawmakers recently reintroduced a bill that would shield certain federal grants for broadband internet deployment projects from taxation. The Broadband Grant Tax Treatment Act (BGTTA) would exempt funding provided by the Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan Act. Those laws allocated $65 billion and $7 billion, respectively, to expand internet access, especially to underserved and rural areas. Recipients of broadband grants currently must return up to 20% in tax. Indeed, of the $65 billion provided by the IIJA, as much as $13 billion would effectively be unavailable to broadband facility deployment under current law. Stay tuned.
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