H.R. 1873 · 119th Congress
Broadband Grant Tax Treatment Act
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R
KellySponsor15 cosponsors · 7 D, 8 R
D
Panetta
DD
D
Davis
BC
R
Carter
RA
R
Allen
DJ
R
Johnson
JC
D
Costa
RY
R
Yakym
DS
R
Schmidt
DR
R
Rouzer
RF
R
Feenstra
ES
D
Sorensen
MB
R
Bost
JWD
Walkinshaw
JM
D
McClellan
EV
D
Vindman1 signed on when it was introduced; the rest joined later. Cosponsors who withdrew aren't shown.
This bill excludes from gross income (for federal tax purposes) certain grants received for broadband deployment.
What it does: CRS summary · Introduced in House · Mar 5, 2025
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, 2023.
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: Broadband Grant Tax Treatment Act
Latest action (Mar 5, 2025): Referred to the House Committee on Ways and Means.
Policy area: Taxation · Origin: House · Introduced: Mar 5, 2025
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.