U.S. Reps. Mike Kelly, R-16, alongside Jimmy Panetta, D-CA-19, reintroduced legislation on Friday, March 7, to ensure grant funding for broadband deployment will not be considered taxable income.

The Broadband Grant Tax Treatment Act is a bill that specifically amends the Internal Revenue Code so deployment under the Infrastructure Investment and Jobs Act and American Rescue Plan is no longer taxable.

Currently, grants awarded for broadband employment are factored into a company’s income and therefore taxable. The bill moves to exclude these grants to ensure the entirety of the funds are dedicated to deploying broadband.

The bill was previously introduced in both 2021 and 2023, and received bipartisan support.