Jefferson City — State Sen. Lincoln Hough, R-Springfield, is applauding the governor’s signing of one of his priority measures for 2023. Senate Bill 25 authorizes an income tax deduction for certain federal grant money.

“Senate Bill 25 may not sound like much, but in reality, it does a great deal to free the shackles of taxation on Missourians,” Sen. Hough said. “Simply put, it allows the use of federal grant money to expand broadband coverage through the most rural parts of our state without having to pay state taxes on the money. I believe this is a win-win for all of Missouri.”

This new law exempts 100% of any federal grant money received by a Missouri taxpayer for the purpose of providing or expanding access to broadband internet to areas of the state deemed to be lacking such access, to the extent such grant money is included in the taxpayer's federal adjusted gross income.

“I would like to thank my colleagues for helping get this legislation to the finish line this year, and the governor for signing it,” Sen. Hough said. “In my opinion, there is no reason to add taxes to grant money. This only hinders the purpose of the grants, and discourages people from applying for available funds. Now, we can help get more Missourians the access they need to high-speed Internet and keep our state moving forward.”

Senate Bill 25 will become law on Aug. 28.