SB 266 — Relating to: an income and franchise tax exemption for broadband expansion grants. (FE)

- 2024 LEGISLATURE LRBs0093/1LRB-2487/1 JK:wljJK&KP:klm SENATE SUBSTITUTEBILL AMENDMENT266 1,May TO2, SENATE2023 BILL- 266Introduced Septemberby 15,Senators 2023UINN, -BRADLEY, OfferedAMES, STAFSHOLT, ESTIN, TOMCZYK and N ASS, cosponsored by SenatorRepresentatives QSUMMERFIELD UINN, ARMSTRONG , CALLAHAN , EDMING, G REEN, HURD , KRUG, KURTZ , MAGNAFICI, M OSES, MURSAU , OVAK , OLDENBURG, PETRYK, PRONSCHINSKE, ROZAR, SAPIK, SNYDER , STEFFEN, S UBECK, SWEARINGEN , V ANDERM EER and S HANKLAND .

AReferred N A CT to createCommittee 71.05on (1)Universities (j), 71.26 (1) (j), 71.34 (1k) (q) and 71.45Revenue. (1) (dp) of the statutes;

A N A CT to create 71.05 (1) (i), 71.26 (3) (ag) 5., 71.34 (1k) (aj) and 71.45 (1) (dp) of the statutes;

an income and franchise tax exemption for broadband expansion grantsgrants. and for federal high-cost program funding for broadband expansion.

Analysis by the Legislative Reference Bureau This bill exempts from state income and franchise taxes income received in the form of a grant issued by the state or by the federal government for broadband expansion in this state;state.

aCurrent city,law village,provides town,an orincome countyand franchise tax exemption for income received in the form of allocations issued by this state;state with moneys received from the federal Coronavirus Relief Fund to be used for broadband expansion.

aThe tribalbill governmentprohibits inclaiming thisthe state;exemption under the bill and the exemption under current law for the same grant.

Because this bill relates to an exemption from state or local taxes, it may be referred to the federalJoint governmentSurvey Committee on Tax Exemptions for broadbanda expansionreport into thisbe state.printed as an appendix to the bill.

TheFor billfurther alsoinformation exemptssee from income and franchise taxes income received in the formstate offiscal fundingestimate, fromwhich thewill federalbe governmentprinted foras anyan high-costappendix universalto servicethis fundingbill. for broadband expansion.

Current law provides an income and franchise tax exemption for income received in the form of allocations issued by this state with moneys received from the federal coronavirus relief fund to be used for broadband expansion.

The bill prohibits claiming the exemptions under the bill and the exemption under current law for the same grant.

LRBs0093/1S -ECTION 2024 Legislature - 2 - JK:wlj SECTION 1 SECTION 1.

71.05 (1) (j)(i) of the statutes is created to read:

71.05- (1)2024 (j)Legislature Grants- and2 high-cost- universalLRB-2487/1 serviceJK&KP:klm fundingSENATE forBILL broadband266 expansion.SECTION 1 71.05 (1) (i) Broadband expansion grants.

1.Income received in the form of a grant issued by the state or by the federal government for broadband expansion in this state.

IncomeNo receivedperson inmay claim the formexemption ofunder athis grantparagraph issuedfor byamounts thisclaimed state;as an exemption under par.

a political subdivision, as defined in s.

16.99 (3d), of this state;

a tribal government in this state;

or the federal government;

or an authorized representative of the state, political subdivision, tribal government, or federal government;

for broadband expansion in this state.

2.

Income received in the form of funding from any high-cost program established by the federal communications commission under 47 USC 254, and the regulations issued under that section, for broadband expansion in this state.

3.

No person may claim the exemptions under this paragraph for amounts claimed as an exemption under par.

71.26 (1)(3) (j)(ag) of5. the statutes is created to read:

71.26of (1)the (j)statutes Grantsis andcreated high-costto universalread: service funding for broadband expansion.

1.71.26 (3) (ag) 5.

Income received in the form of a grant issued by the state or by the federal government for broadband expansion in this state;state.

aNo politicalperson subdivision,may claim the exemption under this subdivision for amounts claimed as definedan inexemption s.under subd.

16.99 (3d), of this state;

a tribal government in this state;

or the federal government;

or an authorized representative of the state, political subdivision, tribal government, or federal government;

for broadband expansion in this state.

Income received in the form of funding from any high-cost program established by the federal communications commission under 47 USC 254, and the regulations issued under that section, for broadband expansion in this state.

3.

No person may claim the exemptions under this paragraph for amounts claimed as an exemption under sub.

(3) (ag) 2.