WASHINGTON, D.C. – U.S. Senators Shelley Moore Capito (R-W.Va.) and Joe Manchin (D-W.Va.) joined a bipartisan group to reintroduce the Broadband Grant Tax Treatment Act (BGTTA). The legislation, led by U.S. Senators Mark Warner (D-Va.) and Jerry Moran (R-Kan.), would amend the Internal Revenue Code to ensure funding for broadband deployment from the Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan (ARP) will not be considered taxable income.
“When Congress funded grant programs to help deploy broadband in underserved states like West Virginia, it was intended for all of those funds to be used for exactly that purpose – for broadband deployment,” Senator Capito said. “Taxing federal broadband grants as gross income undermines our intent for these programs and would further delay efforts to close the digital divide in areas that need broadband connectivity the most. I’m proud to join my colleagues to reintroduce this legislation, and will continue to work toward solutions that help us close the digital divide in West Virginia and rural America.”
“Access to affordable, reliable broadband is vital to the success and growth of our communities across West Virginia,” Senator Manchin said. “That’s why I helped author both the $65 billion broadband provisions in the Bipartisan Infrastructure Law and the $48 billion broadband provisions in the American Rescue Plan to provide historic funding to expand Internet access for all West Virginians, regardless of where they live across our great state. I’m proud to cosponsor this bipartisan, bicameral legislation to ensure the full amount of these critical grants are invested in expanding broadband access and I will continue fighting to promote the full participation of all West Virginians in today’s digital economy.”
Grants awarded for the purposes of broadband deployment are currently factored into a company’s income and are subject to taxation. This bipartisan legislation moves to exclude broadband deployment grants awarded through the IIJA and ARP from an organization’s income, ensuring the entirety of federal dollars awarded to companies for the purpose of deploying broadband around the country can be used wholly for that purpose, rather than making their way back to the government through taxes. Senator Capito first introduced this legislation last September.
In addition to Senators Capito, Manchin, Warner, and Moran, the Broadband Grant Tax Treatment Act is co-sponsored by Senators Tim Kaine (D-Va.), Roger Wicker (R-Miss.), Rev. Raphael Warnock (D-Ga.), Kevin Cramer (R-N.D.), Angus King (I-Maine), James Risch (R-Idaho), Mark Kelly (D-Ariz.), Tommy Tuberville (R-Ala.), Kyrsten Sinema (I-Ariz.), Lisa Murkowski (R-Alaska), Bob Menendez (D-N.J.), Michael Bennet (D-Colo.), and Tammy Baldwin (D-Wis.).
Full text of the legislation is available here.
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