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Federal broadband infrastructure act reintroduced

Several federal lawmakers including Rep. Mike Kelly, R-16th, reintroduced an act Thursday, Feb. 9, that would promote the development of broadband infrastructure.

The Broadband Grant Tax Treatment Act is legislation that would amend the Internal Revenue Code to ensure that funding for broadband deployment from the Infrastructure Investment and Jobs Act and the American Rescue Plan would not be considered taxable income, according to a Thursday news release from Kelly’s office.

The act received bipartisan support, having been reintroduced by Kelly and U.S. Rep. Jimmy Panetta, D-Calif., and U.S. Sens. Mark Warner, D-Va., and Jerry Moran, R-Kan. This legislation was first introduced last Congress in both the House of Representatives and the Senate with bipartisan support, the news release said.

Grants awarded for the purposes of broadband deployment are currently factored into a company’s income and are subject to taxation.

Butler County Commissioner Leslie Osche, who is also chairwoman of the Southwestern Pennsylvania Commission, said that if passed, the bill would provide more incentives to internet service providers to work with local governments to fill broadband holes.

“I think it will make it more attractive for providers to take on a little more of the shared cost,” Osche said. “All of our dollars would go further in getting these projects funded.”

This bipartisan, bicameral legislation moves to exclude broadband deployment grants awarded through the Infrastructure Investment and Jobs Act, the American Rescue Plan and the Tribal Broadband Connectivity Fund from an organization’s income. This is to ensure that federal dollars awarded to companies for the purpose of deploying broadband around the country can be used wholly for that purpose and not subject to federal tax, Kelly’s news release said.

The bill number in the U.S. House is HR 889.

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