Broadband Grant Tax Treatment Act

HR 1873, the Broadband Grant Tax Treatment Act, excludes certain federal broadband grants from taxable income for recipients. It directly affects entities (like internet providers or local governments) receiving qualifying grants under specific programs, including the Broadband Equity, Access, and Deployment Program and State Digital Equity Capacity Grants established by the Infrastructure Investment and Jobs Act. The bill prevents double tax benefits by disallowing deductions for expenses covered by these excluded grants and reduces the adjusted basis of related property. This change applies to grants received in taxable years ending after March 11, 2023.