Bill > S674

This bill amends the Internal Revenue Code to exclude certain broadband grants from gross income, providing tax relief for recipients of federal and state broadband infrastructure funding. Specifically, the bill creates a new section (139J) that exempts from taxation grants received through multiple federal programs, including the Broadband Equity, Access, and Deployment Program, State Digital Equity Capacity Grant Program, Digital Equity Competitive Grant Program, and middle mile grants established under the Infrastructure Investment and Jobs Act. The bill also includes grants from state, territorial, tribal, and local governments funded by specific COVID-19 relief provisions. To prevent potential double benefits, the bill stipulates that taxpayers cannot claim additional deductions or credits for expenses covered by these grants, and the tax basis of related property must be reduced by the grant amount. The provisions apply retroactively to amounts received in taxable years ending after March 11, 2021, and require the Treasury Secretary to issue guidance for implementing these tax treatment rules. This legislation aims to support broadband infrastructure development by removing potential tax barriers to grant funding.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/674/all-info