Assembly Bill 208 proposes to create new tax exemptions for income received from grants and federal funding specifically aimed at broadband expansion in Wisconsin. The bill introduces provisions in the statutes that exempt from state income and franchise taxes any income derived from grants issued by state or local governments, tribal governments, or the federal government for broadband expansion. Additionally, it includes exemptions for funding received from federal high-cost programs established for the same purpose. However, 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 establishes specific sections in the statutes, including 71.05 (1) (j), 71.26 (1) (j), 71.34 (1k) (q), and 71.45 (1) (dp), detailing the conditions under which these exemptions and deductions apply. Each section outlines the sources of income eligible for exemption and includes a clause preventing the simultaneous claiming of these new exemptions with existing ones. The provisions are set to take effect for taxable years beginning after December 31, 2024.