Bills · HR 1873
IN COMMITTEE· 119TH CONGRESS
House BillHR 1873Taxation
Broadband Grant Tax Treatment Act
INTRO MAR 5· LAST ACTION MAR 5
READING
3MIN
COSPONSORS
15BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because fast, reliable internet access is crucial for education, work, healthcare, and economic growth, yet many parts of the U.S. still lack it. The government has invested billions in grants to bridge this 'digital divide.'
If these grants are taxed, a portion of the funds goes back to the government instead of being used for construction, effectively reducing the grant's purchasing power. By making the grants tax-free, this bill ensures that every dollar of a broadband grant can be used for its intended purpose: building internet infrastructure. This could make it easier and more financially viable for providers to build out broadband, potentially accelerating the deployment of high-speed internet to more communities, especially those in rural or underserved areas.
KEY PROVISIONS
4AI-extractedPROVISION 01
Excludes certain 'qualified broadband grants' from a recipient's gross income.
This directly removes the federal income tax burden on these grants, allowing recipients to use the full grant amount for broadband deployment.
PROVISION 02
Defines 'qualified broadband grant' to include grants from specific federal programs (like BEAD, Digital Equity, Middle Mile) and certain state/local grants.
This provision clearly identifies which broadband grants are eligible for tax-free treatment.
PROVISION 03
Prohibits recipients from also claiming tax deductions or credits for expenses covered by the tax-exempt grant, and requires an adjustment to property basis.
This 'denial of double benefit' rule ensures that a recipient receives only one tax advantage for the same expenditure, preventing excessive tax breaks.
PROVISION 04
Applies the tax exclusion to amounts received in taxable years ending after March 11, 2023.
This makes the tax treatment retroactive, covering many grants that have already been awarded under recent federal infrastructure initiatives.
SPONSORSHIP
1 + 15
R· Pennsylvania
YRS IN OFFICE
15
BILLS LED
34
COSPONSOR BREAKDOWNBIPARTISAN · 93%
DEM 7 REP 8 IND 0
ACTION TIMELINE
2 EVENTSMAR 5
Introduced in House
MAR 5
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 1873
Congress119th
StatusIn Committee
IntroducedMar 5, 2025
Last actionMar 5, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED MAR 5, 2025
House BillHR 1873Taxation
Broadband Grant Tax Treatment Act
INTRODUCED MAR 5, 2025· LAST ACTION MAR 5, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
15
COMPLEXITY
Moderate
