Two Republican state representatives on Monday announced their sponsorship for an upcoming bill to expand reliable high-speed internet access in Northern Michigan and the Upper Peninsula.
Reps. Karl Bohnak, R-Deeton, and Parker Fairbairn, R-Harbor Springs, will introduce the Michigan Broadband Accessibility Act later this week. The bill seeks to update the state tax code to ensure that private and government broadband expansion grants can be used to their full potential, rather than being taxed as income.
“Prioritizing the expansion of high-speed internet connectivity is vital to supporting our Northern Michigan and Upper Peninsula communities,” Fairbairn said. He emphasized that many residents in rural areas struggle with essential online services, such as telehealth visits, online banking, and business operations.
Broadband expansion grants awarded to public and private organizations are subject to taxation, reducing the available funding for infrastructure projects. To address this issue, the Michigan Broadband Accessibility Act would create a tax exemption for “middle mile” and “last mile” broadband grants, ensuring more funds go directly toward expanding high-speed internet access.
“Private and public partners are working hard to bring broadband infrastructure to all corners of Michigan,” Bohnak said. “Now, state government must do its part to help expand connectivity. The Michigan Broadband Accessibility Act will remove a paywall blocking progress, allowing for even greater public and private investments into broadband infrastructure.”
According to recent reports, fewer than 50% of households in several Upper Peninsula counties have reliable internet access, with even the most connected counties, like Marquette and Dickinson, falling below the national average of 90%.
“Michigan has received over $1.8 billion in federal grants to expand broadband in these areas, so there’s no question that we’re making progress,” Bohnak said in a statement. “This bill ensures those funds are fully leveraged to achieve 100% broadband coverage across our state.”
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A similar bill received overwhelming bipartisan support last year. As daily life becomes increasingly dependent on online services, including banking, communication, and access to government resources, addressing these “digital deserts” remains a high priority for lawmakers on both sides of the aisle.