This bill, titled the Broadband Grant Tax Treatment Act, proposes to amend the Internal Revenue Code of 1986 by creating a new section, 139J, which would exclude certain qualified broadband grants from gross income. The primary purpose of this exclusion is to provide a tax incentive for entities receiving funds aimed at expanding broadband deployment across the nation. This measure seeks to reduce the tax burden on recipients of these grants, thereby potentially encouraging greater investment in broadband infrastructure. The legislation defines "qualified broadband grants" broadly, encompassing funds from several key federal programs established under the Infrastructure Investment and Jobs Act, such as the Broadband Equity, Access, and Deployment Program, State Digital Equity Capacity Grant Program, and middle mile grants. It also includes specific USDA broadband loan and grant pilot programs, as well as grants from state, territorial, Tribal, or local governments that are funded by certain Social Security Act provisions and designated for broadband infrastructure. To prevent a double benefit , the bill stipulates that no deduction or credit can be claimed for expenditures covered by the excluded grant amounts, and the adjusted basis of any property acquired with such funds must be reduced accordingly. The amendments would apply to amounts received in taxable years ending after March 11, 2023.