S. 674 — 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, 2021. Qualified broadband grants include (1) grants or subgrants under the Broadband Equity, Access, and Deployment Program (sec. 60102 of the Infrastructure Investment and Jobs Act (IIJA)), State Digital Equity Capacity Grant Program (sec. 60304 of IIJA), Digital Equity Competitive Grant Program (sec. 60305 of IIJA), and middle mile broadband grants (sec. 60401 of IIJA); (2) grants under the broadband loan and grant pilot program (sec. 779 of P.L. 115-141) funded by IIJA; (3) grants from states, territories, Tribal or local governments funded by Coronavirus State and Local Fiscal Recovery Funds (secs. 602-604 of the Social Security Act) for broadband infrastructure; and (4) grants or subgrants under sec. 905 of division N of the Consolidated Appropriations Act, 2021. No deduction or credit is allowed for any expenditure to the extent excluded under this provision, and the adjusted basis of related property is reduced by the excluded amount.