Broadband Grant Tax Treatment Act
- Bill Number
- S. 674
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-02-20: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-01-23T19:02:56Z
Official Summary
Broadband Grant Tax Treatment Act
This bill excludes from gross income (for federal tax purposes) certain grants received for broadband deployment.
As background, contributions of capital to a corporation generally are not taxable income. However, under an exception enacted in 2017 by the Tax Cuts and Jobs Act, grants from a government or civic organization are not contributions to capital and, thus, treated as taxable income. Prior to the Tax Cuts and Jobs Act, the Internal Revenue Service (IRS) considered certain grants from a government or civic organization contributions of capital and, thus, not taxable income.
The bill specifically excludes from gross income grants received for broadband deployment from the
- National Telecommunications and Information Administration (NTIA) Broadband Equity, Access, and Deployment Program;
- NTIA State Digital Equity Capacity Grant Program;
- NTIA Digital Equity Competitive Grant Program;
- NTIA Enabling Middle Mile Broadband Infrastructure Program;
- Department of Agriculture ReConnect Program;
- Coronavirus State and Local Fiscal Recovery Funds and the Coronavirus Capital Projects Fund; and
- NTIA Tribal Broadband Connectivity Program and the Broadband Infrastructure Program.
The bill also requires the IRS to issue guidance on the exclusion from gross income of such grants.
The bill applies to funds received in tax years ending after March 11, 2021.
Sponsor
Cosponsors (15)
Sen. Warner, Mark R. [D-VA], Sen. Sullivan, Dan [R-AK], Sen. Kaine, Tim [D-VA], Sen. Tuberville, Tommy [R-AL], Sen. Kelly, Mark [D-AZ], Sen. Capito, Shelley Moore [R-WV], Sen. King, Angus S., Jr. [I-ME], Sen. Wicker, Roger F. [R-MS], Sen. Warnock, Raphael G. [D-GA], Sen. Cramer, Kevin [R-ND], Sen. Fischer, Deb [R-NE], Sen. Baldwin, Tammy [D-WI], Sen. Murkowski, Lisa [R-AK], Sen. Risch, James E. [R-ID], Sen. Bennet, Michael F. [D-CO]
Recent Actions
- 2025-02-20: Read twice and referred to the Committee on Finance.
- 2025-02-20: Introduced in Senate
Bill Versions
- Broadband Grant Tax Treatment Act — issued 2025-02-20 — PDF (4 pages)