SE Kansas News

U.S. Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.) have introduced legislation aimed at amending the Internal Revenue Code to prevent federal broadband deployment grants from being taxed as income. Currently, these grants are included in a company's taxable income, reducing the funds available for broadband expansion.

The bipartisan bill seeks to ensure that all federal dollars allocated for broadband deployment can be used fully for their intended purpose. This legislative effort is supported by Senators Dan Sullivan (R-Alaska), Tim Kaine (D-Va.), Tommy Tuberville (R-Ala.), Mark Kelly (D-Ariz.), Shelley Moore Capito (R-W.V.), Angus King (I-Maine), Roger Wicker (R-Miss.), Raphael Warnock (D-Ga.), Kevin Cramer (R-N.D.), and Deb Fischer (R-Neb.).

Senator Moran emphasized the importance of high-speed internet for Kansans, stating, “Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education.” He added that this legislation would ensure federal grants are not counted as taxable income.

Senator Warner highlighted the need to maximize the impact of infrastructure investments: “In order to fully reap the benefits of the Infrastructure Investment and Jobs Act and the American Rescue Plan, every dollar that was set aside to fund broadband expansion and deployment should be used for that purpose.”

Senator Sullivan noted how critical these investments are for Alaska: “Broadband investments that I worked hard at securing in the bipartisan infrastructure bill will continue to unlock limitless possibilities in terms of telehealth, education and small business opportunities."

Senator Kaine pointed out Virginia's efforts in expanding broadband access: “We made tremendous federal investments...to build broadband infrastructure and help ensure Virginians can access reliable, high-speed internet.”

Other senators also expressed their support for ensuring rural communities benefit from untaxed grants. Senator Capito remarked on rural America's need for connectivity: “Taxing broadband grants would undermine federal efforts to prioritize rural broadband expansion.”

The proposed Broadband Grant Tax Treatment Act aims to address these concerns by preventing taxation on such federal grants. As Senator King stated, "Every single dollar that is invested in broadband deployment is vital."

Finally, Senator Cramer emphasized North Dakota's reliance on reliable broadband: “By making every dollar for broadband expansion count, this bill really does pave the way for a much more connected future.”