I
119THCONGRESS
1
STSESSION H. R. 1873
To amend the Internal Revenue Code of 1986 to exclude certain broadband
grants from gross income.
IN THE HOUSE OF REPRESENTATIVES
MARCH5, 2025
Mr. K
ELLYof Pennsylvania (for himself and Mr. PANETTA) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude
certain broadband grants from gross income.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Broadband Grant Tax 4
Treatment Act’’. 5
SEC. 2. CERTAIN GRANTS FOR BROADBAND EXCLUDED 6
FROM GROSS INCOME. 7
(a) I
NGENERAL.—Part III of subchapter B of chap-8
ter 1 of the Internal Revenue Code of 1986 is amended 9
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by inserting after section 139I the following new sub-1
section: 2
‘‘SEC. 139J. CERTAIN BROADBAND GRANTS. 3
‘‘(a) I
NGENERAL.—Gross income shall not include 4
any qualified broadband grant made for purposes of 5
broadband deployment. 6
‘‘(b) D
ENIAL OF DOUBLEBENEFIT.—Notwith-7
standing any other provision of this subtitle, no deduction 8
or credit shall be allowed for, or by reason of, any expendi-9
ture to the extent of the amount excluded under sub-10
section (a) for any qualified broadband grant which was 11
provided with respect to such expenditure. The adjusted 12
basis of any property shall be reduced by the amount ex-13
cluded under subsection (a) which was provided with re-14
spect to such property. 15
‘‘(c) Q
UALIFIEDBROADBANDGRANT.—For purposes 16
of this section, the term ‘qualified broadband grant’ 17
means— 18
‘‘(1) any grant or subgrant received under the 19
Broadband Equity, Access, and Deployment Pro-20
gram established under section 60102 of the Infra-21
structure Investment and Jobs Act, 22
‘‘(2) any grant or subgrant received under the 23
State Digital Equity Capacity Grant Program estab-24
lished under section 60304 of such Act, 25
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‘‘(3) any grant received under the Digital Eq-1
uity Competitive Grant Program established under 2
section 60305 of such Act, 3
‘‘(4) any grant received under section 60401 of 4
such Act (relating to middle mile grants), 5
‘‘(5) any grant received— 6
‘‘(A) under the broadband loan and grant 7
pilot program established by section 779 of 8
Public Law 115–141 under the Rural Elec-9
trification Act of 1936; and 10
‘‘(B) from funds made available for such 11
program under the heading ‘Distance Learning, 12
Telemedicine, and Broadband Program’ under 13
the heading ‘Rural Utilities Service’ under title 14
I of division J of the Infrastructure Investment 15
and Jobs Act, 16
‘‘(6) any grant received from a State, territory, 17
Tribal government, or unit of local government to 18
the extent such grant was— 19
‘‘(A) funded by amounts provided to the 20
State or local government under section 602, 21
603, or 604 of the Social Security Act, and 22
‘‘(B) provided for the stated purposes of 23
making investments in broadband infrastruc-24
ture, or 25
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‘‘(7) any grant or subgrant received under sec-1
tion 905 of division N of the Consolidated Appro-2
priations Act, 2021. 3
‘‘(d) R
EGULATIONS.—The Secretary shall issue such 4
regulations or other guidance as may be necessary or ap-5
propriate to carry out the purposes of this section.’’. 6
(b) C
LERICALAMENDMENT.—The table of sections 7
for part III of subchapter B of chapter 1 of the Internal 8
Revenue Code of 1986 is amended by inserting after the 9
item related to section 139I the following new item: 10
‘‘Sec. 139J. Certain broadband grants.’’.
(c) EFFECTIVEDATE.—The amendments made by 11
this section shall apply to amounts received in taxable 12
years ending after March 11, 2023. 13
Æ
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