Sinema, Kelly, and Bipartisan Colleagues Continue Efforts Ensuring Efficient Implementation of Broadband Investments

Feb 16, 2023

Senators’ bipartisan legislation would prevent federal government from taxing broadband grants from Sinema’s infrastructure law

WASHINGTON – Arizona Senators Kyrsten Sinema and Mark Kelly re-introduced the Broadband Tax Treatment Act – bipartisan legislation preventing the federal government from taxing broadband grants enacted under the Sinema-negotiated and Kelly-shaped Infrastructure Investment and Jobs law.
“In today’s digital era, Arizonans need access to affordable, high-speed broadband for health care, education, and their careers. Our bipartisan legislation ensures an effective and efficient broadband implementation by removing unnecessary barriers,” said Sinema, co-author and lead negotiator of the bipartisan Infrastructure Investment and Jobs law.
“The funds we secured in the Bipartisan Infrastructure Law to expand Arizonans’ access to high-speed internet are crucial for communities across our state including tribal and rural communities,” said Kelly. “Our bipartisan bill works to make sure every dollar goes to providing infrastructure in communities across Arizona and the country. I will continue to work with my Republican and Democratic colleagues to ensure that Arizonans benefit from this much-needed investment.”
The senators’ bipartisan Infrastructure Investment and Jobs law makes historic and sweeping investments in repairing and upgrading America’s critical infrastructure, including $65 billion to deploy high-speed broadband, expand broadband internet access, and help families afford broadband service.
Under current law, grant funding that internet service providers received under the Infrastructure Investment and Jobs law is considered taxable income. Internet service providers estimate that this could result in returning 21 percent of grant funds back to the federal government through taxes, hindering the ability to connect more Arizonans in rural and underserved areas to broadband service.
The bipartisan Broadband Tax Treatment Act shields the grants awarded to internet service providers from being taxed by the federal government, helping Arizonans who would not otherwise receive broadband service if service providers were to scale back projects.