I 
118TH CONGRESS 
1ST SESSION 
H. R. 889 
To amend the Internal Revenue Code of 1986 to exclude certain broadband 
grants from gross income. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 9, 2023 
Mr. KELLY of Pennsylvania (for himself, Mr. PANETTA, Mr. FERGUSON, Ms. 
SEWELL, Mr. CARTER of Georgia, and Mr. KILDEE) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
certain broadband grants from gross income. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Broadband Grant Tax 
Treatment Act’’. 
SEC. 2. CERTAIN GRANTS FOR BROADBAND EXCLUDED 
FROM GROSS INCOME. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
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by inserting after section 139I the following new sub-
section: 
‘‘SEC. 139J. CERTAIN BROADBAND GRANTS. 
‘‘(a) IN GENERAL.—Gross income shall not include 
any qualified broadband grant made for purposes of 
broadband deployment. 
‘‘(b) DENIAL
OF
DOUBLE
BENEFIT.—Notwith-
standing any other provision of this subtitle, no deduction 
or credit shall be allowed for, or by reason of, any expendi-
ture to the extent of the amount excluded under sub-
section (a) for any qualified broadband grant which was 
provided with respect to such expenditure. The adjusted 
basis of any property shall be reduced by the amount ex-
cluded under subsection (a) which was provided with re-
spect to such property. 
‘‘(c) QUALIFIED BROADBAND GRANT.—For purposes 
of this section, the term ‘qualified broadband grant’ 
means— 
‘‘(1) any grant or subgrant received under the 
Broadband Equity, Access, and Deployment Pro-
gram established under section 60102 of the Infra-
structure Investment and Jobs Act, 
‘‘(2) any grant or subgrant received under the 
State Digital Equity Capacity Grant Program estab-
lished under section 60304 of such Act, 
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‘‘(3) any grant received under the Digital Eq-
uity Competitive Grant Program established under 
section 60305 of such Act, 
‘‘(4) any grant received under section 60401 of 
such Act (relating to middle mile grants), 
‘‘(5) any grant received— 
‘‘(A) under the broadband loan and grant 
pilot program established by section 779 of 
Public Law 115–141 under the Rural Elec-
trification Act of 1936; and 
‘‘(B) from funds made available for such 
program under the heading ‘Distance Learning, 
Telemedicine, and Broadband Program’ under 
the heading ‘Rural Utilities Service’ under title 
I of division J of the Infrastructure Investment 
and Jobs Act, 
‘‘(6) any grant received from a State, territory, 
Tribal government, or unit of local government to 
the extent such grant was— 
‘‘(A) funded by amounts provided to the 
State or local government under section 602, 
603, or 604 of the Social Security Act, and 
‘‘(B) provided for the stated purposes of 
making investments in broadband infrastruc-
ture, or 
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‘‘(7) any grant or subgrant received under sec-
tion 905 of division N of the Consolidated Appro-
priations Act, 2021. 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of the Internal 
Revenue Code of 1986 is amended by inserting after the 
item related to section 139I the following new item: 
‘‘Sec. 139J. Certain broadband grants.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts received in taxable 
years ending after March 11, 2021. 
Æ 
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