H.R. 1873 — Broadband Grant Tax Treatment Act

This section establishes an exclusion from gross income for qualified broadband grants received in taxable years ending after March 11, 2023. Qualified broadband grants include (1) grants or subgrants under the Broadband Equity, Access, and Deployment Program (section 60102 of the Infrastructure Investment and Jobs Act); (2) grants or subgrants under the State Digital Equity Capacity Grant Program (section 60304 of such Act); (3) grants under the Digital Equity Competitive Grant Program (section 60305 of such Act); (4) middle mile broadband grants (section 60401 of such Act); (5) certain grants under the Rural Electrification Act of 1936 from funds provided by the Infrastructure Investment and Jobs Act; (6) state, territorial, Tribal, or local government grants funded by Coronavirus State and Local Fiscal Recovery Funds (sections 602–604 of the Social Security Act) for broadband infrastructure; and (7) grants or subgrants under section 905 of division N of the Consolidated Appropriations Act, 2021. No deduction or credit is allowed for related expenditures, and the adjusted basis of related property is reduced by the excluded amount. (Thus, grant recipients receive tax-free funds to deploy broadband but forgo other tax benefits on those funds or assets.)