Bohnak proposes bipartisan Michigan Broadband Accessibility Act

State Rep. Karl Bohnak on Monday announced his bipartisan plan to support efforts to expand high-speed internet connectivity in the U.P.  and across Michigan. The Michigan Broadband Accessibility Act, House Bill 4237, would reform the tax code to maximize the impact of broadband grant funds, ensuring critical connectivity infrastructure is extended to as many communities and Michiganders as possible.

“Private and public partners are working hard to bring broadband infrastructure to all corners of Michigan,” said Bohnak, R-Deerton. “Now, state government must do its part to help expand connectivity. The Michigan Broadband Accessibility Act will remove a paywall blocking progress, allowing for even greater public and private investments into broadband infrastructure.”

Digital deserts – regions with little to no reliable internet access – have become a significant concern in rural communities. The problem is underscored by how much of daily life – online banking, communication, telehealth, and government services – becomes nearly impossible without access to high-speed internet. Recent reports have found that less than 50% of homes in several U.P. counties have reliable internet access. Even the most connected U.P. counties, including Dickinson and Marquette, fall below the national average of 90% of homes with reliable internet access.

Because of this rising concern, various state and federal grant programs have been implemented to encourage broadband providers to expand access into rural areas. However, under Michigan tax law, these grants are considered income and not tax-exempt.

“Michigan’s received over $1.8 billion in federal grants to expand broadband in these areas, so there’s no question that we’re making progress,” Bohnak said. “My plan will help the people building out these lines fully leverage these grants to achieve 100% broadband coverage across our state.”

Bohnak’s plan would create a tax exemption for all broadband grants. The exemption would ensure a tax-free process for companies and organizations to leverage broadband grants to expand high-speed internet access. The legislation is supported by Democrats and Republicans.

A similar proposal passed the Michigan House with overwhelming bipartisan support last year.

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