State Rep. Karl Bohnak on Tuesday was proud to testify before the House Finance Committee  in support of his plan to expand high-speed internet connectivity in the U.P. and across Michigan. The Michigan Broadband Accessibility Act, House Bill 4287, 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.

“This bill would ensure that taxpayer dollars go completely toward the expansion of reliable internet access and exempt federal grant money from the state’s redundant double tax,” said Bohnak, R-Deerton. “Our world is continuously innovating, and so much of what we do is now online, including telehealth, online banking, schooling, and even some careers. It’s crucial that we take the necessary steps to ensure all residents have connectivity options at a reasonable cost.”

Digital deserts – regions with little to no reliable internet access – have become a significant concern in rural communities. Recent reports have found that less than 50% of homes in several U.P. counties have 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.

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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