HB4287 allows individuals and businesses to deduct certain government grants used for broadband expansion from their taxable income. The deduction applies to funds received through several state and federal broadband programs intended to improve or expand high-speed internet infrastructure. The goal is to ensure that broadband development grants are not treated as taxable income, making it easier and more affordable for companies to invest in expanding internet access, particularly in underserved areas.
The Michigan State House of Representatives passed HB4287 on May 21, 2025 by a vote of 97 to 8. We have assigned pluses to the nays because this bill reinforces government-subsidized broadband by granting special tax treatment to recipients of these programs. Such subsidies and targeted tax deductions allow government to pick winners and losers in the marketplace, benefiting select businesses and industries at the expense of others. These policies expand government interference in the market and create a system of economic favoritism. Additionally, the federal government has no constitutional authority to engage in broadband policy, and Michigan should not legitimize this unconstitutional usurpation.