II 

118TH CONGRESS 

1ST SESSION S. 341 

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

grants from gross income. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 9, 2023 

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

WARNOCK, Mr. CRAMER, Mr. MANCHIN, Mrs. CAPITO, Mr. KING, Mr. 

RISCH, Mr. KELLY, Mr. TUBERVILLE, Ms. SINEMA, Ms. MURKOWSKI, 

Mr. MENENDEZ, Mr. BENNET, and Ms. BALDWIN) 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’’. 


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1 SEC. 2. CERTAIN GRANTS FOR BROADBAND EXCLUDED 

2 FROM GROSS INCOME. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting after section 139I the following new sub6 section: 

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

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

9 any qualified broadband grant made for purposes of 

10 broadband deployment. 

11 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—Notwith12 standing any other provision of this subtitle, no deduction 

13 or credit shall be allowed for, or by reason of, any expendi14 ture to the extent of the amount excluded under sub15 section (a) for any qualified broadband grant which was 

16 provided with respect to such expenditure. The adjusted 

17 basis of any property shall be reduced by the amount ex18 cluded under subsection (a) which was provided with re19 spect to such property. 

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

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

22 means— 

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

24 Broadband Equity, Access, and Deployment Pro25 gram established under section 60102 of the Infra26 structure Investment and Jobs Act, 


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

2 State Digital Equity Capacity Grant Program estab3 lished under section 60304 of such Act, 

4 ‘‘(3) any grant received under the Digital Eq5 uity Competitive Grant Program established under 

6 section 60305 of such Act, 

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

8 such Act (relating to middle mile grants), 

9 ‘‘(5) any grant received— 

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

11 pilot program established by section 779 of 

12 Public Law 115–141 under the Rural Elec13 trification Act of 1936; and 

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

15 program under the heading ‘Distance Learning, 

16 Telemedicine, and Broadband Program’ under 

17 the heading ‘Rural Utilities Service’ under title 

18 I of division J of the Infrastructure Investment 

19 and Jobs Act, 

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

21 Tribal government, or unit of local government to 

22 the extent such grant was— 

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

24 State or local government under section 602, 

25 603, or 604 of the Social Security Act, and 


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

2 making investments in broadband infrastruc3 ture, or 

4 ‘‘(7) any grant or subgrant received under sec5 tion 905 of division N of the Consolidated Appro6 priations Act, 2021. 

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

8 regulations or other guidance as may be necessary or ap9 propriate to carry out the purposes of this section.’’. 

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

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

12 Revenue Code of 1986 is amended by inserting after the 

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

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

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

15 this section shall apply to amounts received in taxable 

16 years ending after March 11, 2021. 

Æ 


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