Grants vs. Credits

By Brad

Recently, the House Committee on Appropriations revealed an economic stimulus package that included $6 billion in grants for high-tech companies to bring broadband to rural and underserved areas. That the funds came in the form of grants proved to be a bit of a sticking point, as high-tech companies stated their preference for tax breaks instead.

Now, as the Wall Street Journal reports, the Senate Finance Committee has come out with a stimulus plan of their own, one that raises the dollar amount for broadband buildout to $9 billion, and offers a 10% tax credit for investing in current-generation broadband, and an addition 20% for investing in the so-called “next-generation” of the Internet.

Whether grants or tax credits will win out is still up in the air, but according to Business Week, the House plan may have the upper hand.