II 

117TH CONGRESS 

2D SESSION S. 5021 

To amend the Internal Revenue Code of 1986 to exclude certain broadband 

grants from gross income. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2022 

Mr. WARNER (for himself, Mr. MORAN, Mr. KAINE, Mr. WICKER, Mr. 

WARNOCK, and Mrs. CAPITO) introduced the following bill; which was 

read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

certain broadband grants from gross income. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Broadband Grant Tax 

5 Treatment Act’’. 

6 SEC. 2. CERTAIN GRANTS FOR BROADBAND EXCLUDED 

7 FROM GROSS INCOME. 

8 (a) IN GENERAL.—Part III of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 is amended 


pbinns on DSKJLVW7X2PROD with $$_JOB
2 

•S 5021 IS

1 by inserting after section 139I the following new sub2 section: 

3 ‘‘SEC. 139J. CERTAIN BROADBAND GRANTS. 

4 ‘‘(a) IN GENERAL.—Gross income shall not include 

5 any qualified broadband grant made for purposes of 

6 broadband deployment. 

7 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—Notwith8 standing any other provision of this subtitle, no deduction 

9 or credit shall be allowed for, or by reason of, any expendi10 ture to the extent of the amount excluded under sub11 section (a) for any qualified broadband grant which was 

12 provided with respect to such expenditure. The adjusted 

13 basis of any property shall be reduced by the amount ex14 cluded under subsection (a) which was provided with re15 spect to such property. 

16 ‘‘(c) QUALIFIED BROADBAND GRANT.—For purposes 

17 of this section, the term ‘qualified broadband grant’ 

18 means— 

19 ‘‘(1) any grant or subgrant received under the 

20 Broadband Equity, Access, and Deployment Pro21 gram established under section 60102 of the Infra22 structure Investment and Jobs Act, 

23 ‘‘(2) any grant or subgrant received under the 

24 State Digital Equity Capacity Grant Program estab25 lished under section 60304 of such Act, 


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•S 5021 IS

1 ‘‘(3) any grant received under the Digital Eq2 uity Competitive Grant Program established under 

3 section 60305 of such Act, 

4 ‘‘(4) any grant received under section 60401 of 

5 such Act (relating to middle mile grants), 

6 ‘‘(5) any grant received— 

7 ‘‘(A) under the broadband loan and grant 

8 pilot program established by section 779 of 

9 Public Law 115–141 under the Rural Elec10 trification Act of 1936; and 

11 ‘‘(B) from funds made available for such 

12 program under the heading ‘Distance Learning, 

13 Telemedicine, and Broadband Program’ under 

14 the heading ‘Rural Utilities Service’ under title 

15 I of division J of the Infrastructure Investment 

16 and Jobs Act, 

17 ‘‘(6) any grant received from a State, territory, 

18 Tribal government, or unit of local government to 

19 the extent such grant was— 

20 ‘‘(A) funded by amounts provided to the 

21 State or local government under section 602, 

22 603, or 604 of the Social Security Act, and 

23 ‘‘(B) provided for the stated purposes of 

24 making investments in broadband infrastruc25 ture, or 


pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•S 5021 IS

1 ‘‘(7) any grant or subgrant received under sec2 tion 905 of division N of the Consolidated Appro3 priations Act, 2021. 

4 ‘‘(d) REGULATIONS.—The Secretary shall issue such 

5 regulations or other guidance as may be necessary or ap6 propriate to carry out the purposes of this section.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for part III of subchapter B of chapter 1 of the Internal 

9 Revenue Code of 1986 is amended by inserting after the 

10 item related to section 139I the following new item: 

‘‘Sec. 139J. Certain broadband grants.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to amounts received in taxable 

13 years ending after March 11, 2021. 

Æ 


pbinns on DSKJLVW7X2PROD with $$_JOB