Assembly Bill 208 proposes to create several new provisions in the Wisconsin statutes that would exempt income received from grants and federal high-cost program funding specifically for broadband expansion from state income and franchise taxes. The bill establishes exemptions under sections 71.05 (1) (j), 71.26 (1) (j), 71.34 (1k) (q), and 71.45 (1) (dp), which detail that income from grants issued by state or local governments, tribal governments, or the federal government for broadband expansion will not be subject to these taxes. Additionally, funding from high-cost programs established by the Federal Communications Commission for broadband expansion is also exempted.

The bill includes a stipulation that individuals cannot claim these new exemptions in conjunction with existing exemptions for the same grant under current law. This means that if a person claims an exemption under the new provisions, they cannot also claim an exemption for the same income under existing regulations related to allocations from the federal coronavirus relief fund. The bill is set to apply to taxable years beginning after December 31, 2024.