Senate Bill 176 proposes the creation of new tax exemptions for income received from grants and federal funding specifically aimed at broadband expansion in Wisconsin. The bill introduces provisions under sections 71.05, 71.26, 71.34, and 71.45 of the statutes, which exempt income from grants issued by state or local governments, tribal governments, or the federal government, as well as funding from high-cost programs established by the Federal Communications Commission (FCC) for broadband expansion. Additionally, the bill stipulates that individuals cannot claim these new exemptions in conjunction with existing exemptions related to allocations from the federal coronavirus relief fund.

The bill aims to encourage broadband expansion by alleviating the tax burden on entities receiving such funding. It specifies that the exemptions will apply to taxable years beginning after December 31, 2024, and includes a provision for the Joint Survey Committee on Tax Exemptions to review the bill due to its implications on state and local taxes. Overall, the legislation seeks to enhance broadband access across Wisconsin by providing financial incentives through tax exemptions.