King, Colleagues Introduce Bipartisan Bill to Make Federally Funded Broadband Projects Tax-Free

February 25, 2025
WASHINGTON, D.C.— U.S. Senator Angus King (I-ME) is cosponsoring bipartisan legislation that would allow broadband developers to maximize the impact of federal funding in Maine’s underserved communities. TheBroadband Grant Tax Treatment Actwould exclude broadband deployment grants awarded through certain federal programs from an organization’s taxable income. If passed, this would ensure the entirety of federal dollars awarded to companies for the purpose of deploying broadband around the country can be used for that purpose, rather than making their way back to the government through taxes.
According to theMaine Connectivity Authority, the majority of Maine locations (89%) now have access to broadband internet — a 3% increase from 2023, due in large part to federal funding from theAmerican Rescue Plan Act’sCapitol Projects Fund and the BipartisanInfrastructure Investment and Jobs Act, championed by Senator King. The remainder of Maine people with unreliable internet access — or no internet access at all — is particularly high in rural communities.“In today’s digital age, access to high-speed, affordable broadband is critical for Maine people to live, work and stay connected with one another,”said Senator King. “Every single dollar that is invested in broadband deployment is vital, and shouldn’t be clawed back by the government at the cost of connecting an extra community street or neighborhood that needs it. I want to thank my colleagues for coming together to help close the digital divide in rural and urban communities in Maine and across the nation.”
"TheBroadband Grant Tax Treatment Actwill help ensure that necessary federal investments in broadband infrastructure are deployed as efficiently and effectively as possible, providing relief to small businesses, communities and consumers,”said Andrew Butcher, President of Maine Connectivity Authority. “Connectivity to high speed internet is a modern necessity and the BGTTA will help stretch critical funding as far as possible, accelerating deployment and reducing costs."
In addition to Senator King, this legislation is cosponsored by Senators Jerry Moran (R-KS), Mark Warner (D-VA), Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Roger Wicker (R-MS), Raphael Warnock (D-GA), Kevin Cramer (R-ND) and Deb Fischer (R-NE).
Senator King is a longstanding advocate for the expansion of broadband access;his first op-ed as a Senate candidate in2012 was to tout the social and economic potential of statewide connectivity. He has continued to push Maine in the direction of full statewide connectivity throughout his time in the Senate. Most recently, Senator King helped secure a$24.8 million investmentin broadband infrastructure and digital literacy. He also introduced theDigital Equity Act of 2021, creating new federal investments toward programs promoting digital equity, and went on to be a key negotiator in securing$65 billiontoward broadband infrastructure as part of theBipartisan Infrastructure Lawin 2021.
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