D.C. Friday: TIA Wants White House Help to Make BEAD Grants Tax Exempt
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BEAD: The Telecommunications Industry Association is pushing to make BEAD grants tax exempt, but it was unclear whether the scope of its desired exemption would include state taxes or just the 21% federal levy. “Congress never intended for BEAD grants to be subject to federal income tax, and treating these funds as taxable income could impede applicants' ability to apply and diminish the program's overall impact,” said TIA CEO David Stehlin in a Feb. 18 letter to Commerce Secretary Howard Lutnick, who was confirmed the same day, 51 to 45, in the Senate. At Lutnick’s Jan. 29 confirmation hearing, Sen. Jerry Moran (R-Kan.) put in a plug for his bipartisan bill to ensure that BEAD grants were not considered taxable income at the federal level. Lutnick replied, “What you just said sounds entirely sensible.” TIA represents more than 400 global manufacturers of telecommunications equipment and services. “To further ensure that BEAD funds are administered in a manner consistent with Congress’s intent, it is essential for the administration to work with Congress on enacting legislation that prevents federal broadband grants from being considered taxable income,” Stehlin said.
