Broadband Grant Tax Treatment Act

The Broadband Grant Tax Treatment Act (S 674) excludes specific federal and state broadband grants from being counted as taxable income for recipients. It applies to grants from programs like the Broadband Equity, Access, and Deployment Program (under the Infrastructure Investment and Jobs Act) and similar state/local initiatives funded by federal broadband grants. The law prevents double tax benefits by disallowing deductions for expenses covered by the excluded grant and reducing the property’s cost basis by the grant amount. This directly affects broadband providers and local governments receiving these grants, making the funds tax-free without allowing additional tax deductions for the same spending.