Relating to: an income and franchise tax exemption for broadband expansion grants and for federal high-cost program funding for broadband expansion. (FE)

AB 208 creates tax exemptions for income and franchise taxes related to broadband expansion funding. It directly affects internet service providers, telecom companies, and community organizations receiving grants or federal high-cost program funds for building broadband infrastructure in the state. The bill exempts from taxation: (1) state/local/tribal/federal grants for broadband expansion, and (2) federal high-cost program funding under 47 USC 254. These exemptions apply to taxable years beginning after December 31, 2024, and prevent double-counting with other existing tax provisions.