HR1873Referred to Committee

Broadband Grant Tax Treatment Act

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2025-03-05
Introduced
11
Cosponsors
HR
ⓘ
Type

Sponsor

Mike Kelly
Mike Kelly
Republican · PA · Representative
Votes with party: 98.5% (543 recorded votes)

Full profile: /officials/K000376

Source: Congress.gov · FEC

Cosponsors (11)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Referred to the House Committee on Ways and Means.

2025-03-05

Source: Congress.gov

Committee Activity

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Plain-English 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.

Plain-English rewrite of the Congressional Research Service summary published on Congress.gov. Cached and reviewed.

Subjects

Taxation
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