Broadband Grant Tax Treatment Act

This bill excludes from gross income (for federal tax purposes) certain grants received for broadband deployment.

As background, contributions of capital to a corporation generally are not taxable income. However, under an exception enacted in 2017 by the Tax Cuts and Jobs Act, grants from a government or civic organization are not contributions to capital and, thus, treated as taxable income. Prior to the Tax Cuts and Jobs Act, the Internal Revenue Service (IRS) considered certain grants from a government or civic organization contributions of capital and, thus, not taxable income.

The bill specifically excludes from gross income grants received for broadband deployment from the

National Telecommunications and Information Administration (NTIA) Broadband Equity, Access, and Deployment Program;

Summary by the Congressional Research Service.