WASHINGTON, D.C. – U.S. Senator Angus King, has cosponsored a bipartisan bill to maximize the historic broadband funding for residents across Maine. The Broadband Grant Tax Treatment Act would classify broadband funding from the Bipartisan Infrastructure Law and the American Rescue Plan as non-taxable income, ensuring that the entirety of federal dollars awarded to companies for the purpose of deploying broadband in Maine can be used wholly for that purpose, rather than going back to the government through taxes.

Currently, grants awarded to industry for broadband deployment are factored into a company’s income unless Congress acts to address the problem. This new bipartisan legislation moves to exclude broadband deployment grants awarded through the bipartisan infrastructure law and ARP from an organization’s income.

“The Bipartisan Infrastructure Law and American Rescue Plan made once-in-a-generation investments to help every Maine household get an affordable, reliable broadband connection. Now, we have to ensure the funding is delivered in full to accomplish our connectivity goals,” said King. “Taxing federal broadband grants as income undermines the purpose of these historic internet connectivity programs and creates unnecessary hurdles for companies looking to invest in Maine. The Broadband Grant Tax Treatment Act is a commonsense step to make the most of the new broadband funding. As we approach the one-year anniversary of the Bipartisan Infrastructure Law’s signing, I hope Congress will pass this bipartisan effort to further improve legislation that is providing game changing opportunities for Maine communities.”

“This is smart and focused legislation that will amplify the impact of both the BIL and ARP directly benefiting small businesses, communities, and consumers,” said Andrew Butcher, President of the Maine Connectivity Authority. “Maine’s Internet Service Providers, contractors, and consumers have a huge job to build modern, world-class high-speed internet infrastructure and the BGTTA will help ensure that the federal investment reaches as far as possible to ensure internet for all.”