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Michigan bill to create tax cuts for broadband projects

by Sophia Murphy
September 27, 2024 - Updated on October 14, 2024
A A

LANSING, Mich. (WZMQ) – New legislation could bring tax cuts to groups working to expand broadband in Michigan. The bill passed in the state House of Representatives on Wednesday and would amend the Income Tax Act to allow grant money related to broadband expansion to be deducted from the taxable income of both individual and corporate taxpayers.

It was introduced by Representative Jenn Hill (D – Marquette), who said the bill will incentivize broadband projects which will open doors to expand the economy of the U.P.

“I’m excited about the opportunities that this means to restore manufacturing,” Hill said. “and what it means for renewable energy and the new economy that we’re building in Michigan. We want to make it in Michigan.”

Currently, broadband expansion grants from the federal bipartisan infrastructure law are subject to state taxation as they are seen as income for entities deploying broadband across the state. The bill would exempt broadband grants from income tax, increasing the funding available to expand access to high-speed internet across the state.

The bill states that it is retroactive and would apply for tax years beginning on and after January 1, 2023. A person subject to tax under the act could deduct grant money received through specific programs for the purpose of providing, improving, or expanding broadband expansion in michigan.

The bill is now waiting for a vote in the state Senate before it can be signed by the Governor.

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