Harris’ Proposed Corporate Tax Hike Could Alter ISPs’ BEAD Plans

WASHINGTON, Sept. 30, 2024 – Billions of dollars are set to connect rural America to the digital world—but a new tax proposal could slash how much funding makes it to the ground.

Vice President Kamala Harris, the Democratic Party's presidential nominee, recently proposed increasing the corporate income tax from 21% to 28%, which could potentially have a major effect on the $42.5 billion allocated for high-speed internet expansion under the federal Broadband, Equity, Access, and Deployment program. 

Since BEAD funds are currently treated as taxable income, the higher 28% rate would mean that a substantial portion of the funding could be diverted right back to the U.S. Treasury rather than being used to build out broadband infrastructure.