TIA Calls for Tax Emption for BEAD Grants

WASHINGTON, Feb. 24, 2025 – The Telecommunications Industry Association urged the Trump Administration to work with Congress to exclude certain broadband grants from federal corporate income taxes in a letter congratulating Howard Lutnick on his Senate confirmation as Secretary of Commerce.

In last week’s letter, the association outlined some of its priorities for the year and asked Lutnick to address them so that the $42.45 billion Broadband Equity, Access, and Deployment program can be continued and implemented quickly.

Among those priorities was ensuring that BEAD grants were not categorized as taxable income. Broadband grants are currently subject to the 21% federal corporate income tax, which some experts have argued dissuades Internet Service Providers from participating.