Broadband Grant Tax Treatment Act

This bill excludes certain federal broadband grants from recipients' taxable income, directly affecting internet service providers, local governments, tribes, and other entities receiving qualifying grants under specific programs. Key provisions clarify that grant money from programs like the Infrastructure Investment and Jobs Act's Broadband Equity, Access, and Deployment Program (Section 60102) or State Digital Equity Grants (Section 60304) is not counted as income. It also prevents double tax benefits by disallowing deductions for expenses covered by these grants and reducing the adjusted basis of related property. The rule applies to grants received after March 11, 2021, and covers grants funded through federal broadband initiatives or state/local programs using specific federal funds.