State Rep. Parker Fairbairn on Monday announced his co-sponsorship of a bipartisan plan to tackle broadband expansion in Northern Michigan and other underserved areas. The legislation would help maximize the impact of broadband expansion grants by reforming the tax code and supporting public and private efforts to extend high-speed internet accessibility.

“Prioritizing the expansion of high-speed internet connectivity is vital to supporting our Northern Michigan and Upper Peninsula communities,” said Fairbairn, R-Harbor Springs. “There are so many people in rural areas who can’t attend an online doctor’s visit, access their bank accounts, or simply Facetime a loved one. Helping expand broadband will help make life easier for current residents of rural Michigan and make our rural communities even more appealing to potential residents and job providers.”

Many areas of Northern Michigan and the U.P. could be considered “digital deserts,” a term used to describe regions, usually rural, without reliable, high-speed internet access. Residents and businesses in digital deserts face barriers that those with dependable broadband access don’t, such as online banking, telehealth, virtual meetings, and the delivery of other personal and business services many depend on in the internet age.

The glaring lack of connectivity in some areas has led to the creation of several state and federal competitive grant programs meant to encourage public and private efforts to expand high-speed internet access. However, under Michigan tax law, these grants are taxed as income, and the amount of funding available to create the desired infrastructure is immediately diminished.

The Michigan Broadband Accessibility Act – which will be introduced by state Rep. Karl Bohnak, R-Deeton, and co-sponsored by Rep. Fairbairn, later this week – would create a tax exemption for these “middle mile” and “last mile” broadband grants. The legislation is supported by Republican and Democrat lawmakers in both chambers.

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