Wisconsin Senate Bill SB266

Wisconsin 2023-2024 Regular Session

• Introduced: 5/2/23
• Refer: 5/2/23
• Report Pass: 10/11/23
• Failed: 4/15/24

Caption

An income and franchise tax exemption for broadband expansion grants. (FE)

Impact

If enacted, SB266 will modify the state statutes regarding income taxation. Specifically, it establishes a clear exemption for grants that support the expansion of broadband, which is crucial for enhancing internet connectivity across underserved areas in Wisconsin. This change could incentivize local governments and private entities to apply for and utilize federal and state grants for broadband infrastructure improvements, thereby potentially closing the digital divide in rural and urban communities alike.

Summary

Senate Bill 266 proposes an income and franchise tax exemption for income received from broadband expansion grants issued by the state or federal government. The legislation aims to encourage broadband development in Wisconsin by alleviating the tax burdens associated with grants aimed at enhancing internet access. This bill expands on existing provisions but specifies that individuals cannot claim exemptions under both the new law and the current law for the same grant, ensuring that the benefits are not duplicated.

Contention

Opponents of SB266 may contend that while the aim of increasing broadband access is laudable, the focus on tax exemptions should be balanced with broader strategy regarding how such expansions are funded and managed. Some may argue that indiscriminate tax exemptions could reduce state revenue, impacting funding for other essential services. Additionally, there might be concern over ensuring that the grants are directed equitably and efficiently, addressing both urban and rural needs without favoring one over the other.