H.R. 1873: Broadband Grant Tax Treatment Act

119th Congress · introduced 2025-03-05 · Taxation · Latest: Referred to the House Committee on Ways and Means.

federal

Official title

Broadband Grant Tax Treatment Act

Plain summary

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; NTIA State Digital Equity Capacity Grant Program; NTIA Digital Equity Competitive Grant Program; NTIA Enabling Middle Mile Broadband Infrastructure Program; Department of Agriculture ReConnect Program; Coronavirus State and Local Fiscal Recovery Funds and the Coronavirus Capital Projects Fund; and NTIA Tribal Broadband Connectivity Program and the Broadband Infrastructure Program. The bill also requires the IRS to issue guidance on the exclusion from gross income of such grants. The bill applies to funds received in tax years ending after March 11, 2023.

Congressional Research Service summary (Introduced in House), quoted unchanged (nonpartisan). Read the source.

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Official text

Broadband Grant Tax Treatment Act

Source: Congressional Research Service summary (Introduced in House)

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Officials and money

Sponsor: Rep. Kelly, Mike [R-PA-16] · 15 cosponsors

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Sources

Congressional Research Service summary (Introduced in House)
Congress.gov
Data: GovInfo BILLSTATUS bulk data (Library of Congress), BILLSTATUS-119hr1873.xml <https://www.govinfo.gov/bulkdata/BILLSTATUS/119/hr>

Record fed-us-cong119-hr1873 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills