Bills · S 674
IN COMMITTEE· 119TH CONGRESS
Senate BillS 674Taxation
Broadband Grant Tax Treatment Act
INTRO FEB 20· LAST ACTION FEB 20
READING
3MIN
COSPONSORS
15BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it directly impacts the financial incentives for expanding broadband internet across the country. By making specific broadband grants tax-free, it effectively increases the value of these grants to the recipients. This means that for every dollar awarded, more of that dollar can go directly into building internet infrastructure rather than being paid in taxes.
If this bill becomes law, it could accelerate the deployment of high-speed internet to rural and underserved areas by making projects more financially viable for providers. It reduces the overall cost of these projects, which could encourage more companies to bid on grants and undertake challenging deployments. If it doesn't become law, these grant recipients would continue to pay taxes on the grant money, potentially reducing the scale or speed of broadband projects and making it harder to connect every American.
KEY PROVISIONS
4AI-extractedPROVISION 01
Excludes specific broadband grants from an organization's gross income, meaning they won't pay income tax on these funds.
This provision directly reduces the tax burden on entities receiving grants to build broadband, making the grants more impactful.
PROVISION 02
Prevents organizations from claiming deductions or credits for expenditures that were paid for with the tax-free broadband grant money.
This ensures that recipients do not receive a 'double benefit' by avoiding tax on the grant and then also claiming tax breaks for the same spending.
PROVISION 03
Defines 'qualified broadband grant' to include funds from major federal programs like BEAD, Digital Equity, Middle Mile grants, certain Rural Utilities Service grants, and specific state/local grants funded by COVID-19 relief.
This clearly specifies which broadband grants are eligible for the tax exclusion, providing certainty to grant recipients.
PROVISION 04
Applies the tax exclusion retroactively to amounts received in taxable years ending after March 11, 2021.
This means that grants received since early 2021, when many major broadband funding programs began, would be eligible for the tax-free treatment.
SPONSORSHIP
1 + 15
R· Kansas
YRS IN OFFICE
29
BILLS LED
85
COSPONSOR BREAKDOWNBIPARTISAN · 85%
DEM 6 REP 8 IND 1
ACTION TIMELINE
2 EVENTSFEB 20
Introduced in Senate
FEB 20
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 674
Congress119th
StatusIn Committee
IntroducedFeb 20, 2025
Last actionFeb 20, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED FEB 20, 2025
Senate BillS 674Taxation
Broadband Grant Tax Treatment Act
INTRODUCED FEB 20, 2025· LAST ACTION FEB 20, 2025
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
15
COMPLEXITY
Moderate
