Bill > HR1873

This bill amends the Internal Revenue Code to exclude certain broadband grants from being counted as taxable income. Specifically, the bill creates a new section (139J) that allows recipients of qualified broadband grants to avoid paying taxes on those grants. The qualified grants include funding from several federal programs like the Broadband Equity, Access, and Deployment Program, State Digital Equity Capacity Grant Program, and grants related to middle-mile infrastructure. The bill also covers grants from state, territorial, tribal, and local governments that were funded by specific COVID-19 relief provisions. To prevent "double-dipping," the bill stipulates that taxpayers cannot claim additional tax deductions or credits for expenses covered by these grants, and they must reduce the tax basis of any property purchased with grant funds. The grants must be specifically for broadband deployment purposes. The Internal Revenue Service is required to issue guidance on implementing these rules, and the provisions apply to grants received in taxable years ending after March 11, 2023, which means it primarily impacts grants related to recent federal infrastructure and pandemic relief legislation.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1873/all-info