A bill focused on expanding critical connectivity infrastructure through broadband grant funds was advanced by the Michigan House last week, with bill co-sponsor state Rep. Greg Alexander announcing the news Wednesday, May 21.
House Bill 4287 will help address digital deserts – regions with little to no reliable internet access – which have significantly impacted rural areas.
Various state and federal broadband grant programs award funds to broadband providers with the intent these funds be used to further develop broadband infrastructure. But these grant awards are currently not tax exempt and are considered income, meaning a grant recipient must pay taxes on the award amount. This requires applicants to reserve funds they could otherwise use to match grant funds and make their applications more competitive – a process that slows expansion efforts.
Over a dozen grant programs would be eligible, including Broadband Expansion Act of Michigan (BEAM), the Middle-Mile Grant Program, the Rural Digital Opportunity Fund, which is administered by the Federal Communication Commission, and more.
HB 4287, which was advanced with overwhelming, bipartisan support, now moves to the state’s Senate for consideration.
