Post Date: February 27, 2025
Introduced earlier this month, Senate Bill 341 would exempt certain broadband grants from federal income tax. If enacted, the bill would exempt the following grants from tax:
- BEAD grants
- State Digital Equity Capacity Grant Program
- Digital Equity Competitive Grant Program
- Middle Mile grants
- Certain ReConnect grants
- Certain grants from state, tribal, local governments
- Broadband Infrastructure Program grants
We have previously written about the act that rendered grants subject to taxation, as well as the act that fixed the problem for tax-exempt cooperatives but not for taxable cooperatives.
This bill would fix the taxable-grant problem for taxable utilities, but only for broadband grants.
Notably, the bill’s purported effective date would be March 11, 2021, and it would not permit double benefit, such as deductions arising from expenses derived from such grants.
