Gallego Moves to Lower Taxes for Arizona’s Broadband Grant Recipients
The Broadband Grant Tax Treatment Act ensures funding for broadband deployment is not considered taxable income.
WASHINGTON, DC – Rep. Ruben Gallego (AZ-03) signed on to the Broadband Grant Tax Treatment Act (BGTTA), bipartisan legislation that would amend the Internal Revenue Code to ensure that funding for broadband deployment from the Bipartisan Infrastructure Law (BIL) and the American Rescue Plan (ARP) will not be considered taxable income.
“For the more than 207,000 households in Arizona without home internet, our historic Bipartisan Infrastructure Law and American Rescue Plan are expanding coverage to get these Arizonans connected," said Rep. Ruben Gallego. “This is all possible thanks to federal grants heading to our state, but as local governments and small businesses work to bring internet access to our communities, they’re getting hit with a tax bill. That’s not right, and that’s why I’m proud to support legislation that will close our state’s digital divide and bring in these needed investments.”
Approximately 14% of Arizonans lack broadband access and 45% have access to only one internet provider, making broadband unaffordable. Another 13% of Arizona households lack internet subscriptions entirely. That’s why Rep. Gallego is committed to extending the funding for the Affordable Connectivity Program.
Grants awarded for the purposes of broadband deployment are currently factored into a company's income and are subject to taxation. This bipartisan, bicameral legislation moves to exclude broadband deployment grants awarded through the (BIL), ARP, and Tribal Broadband Connectivity Fund from an organization's income, ensuring the entirety of federal dollars awarded to companies to deploy broadband around the country can be used wholly for that purpose, rather than making their way back to the government through taxes.
Rep. Gallego has worked in Congress to expand broadband across Arizona. In June, he announced $30,281,277 in grant funding from BroadBandUSA, the Department of Commerce’s digital inclusion program, to expand internet access in Pima County.