Major telecommunications companies, Verizon, T-Mobile, and AT&T, have urged Montana lawmakers to support a new bill granting property tax breaks to expand wireless networks. This tax incentive, they argue, would encourage investment in rural areas that are often challenging to serve. The proposed Senate Bill 534 aims to extend existing tax relief for wired broadband to include wireless infrastructure, like cell towers. Approved by the Senate Taxation Committee, the bill must pass the Senate by April 5 to become law this year.
Sen. Greg Hertz, R-Polson, the bill’s sponsor, emphasized fairness in applying tax breaks to both wired and wireless technologies. Proponents argue this move addresses the logistical challenges of reaching Montana’s dispersed population. Mike Green from Verizon noted the efficiency of using towers to cover large areas compared to laying fiber.
There was no opposition to SB 534 during the initial hearing, unlike a similar bill in 2023 that stalled due to procedural issues. Previous efforts to pass similar legislation were hindered by late-session delays.
The tax break, established by Senate Bill 51 in 2021, grants a five-year property tax exemption for new fiber optic or coaxial cables, slowly phasing taxes back over another five years. Sen. Jason Ellsworth, who sponsored this bill, highlighted that these incentives are crucial for deploying ‘last mile’ connections in underserved areas.
Montana’s tax system shifts the burden of tax breaks onto other property owners, including homeowners, as it funds local services like schools and police. Current law requires companies to reinvest tax savings into infrastructure, excluding projects funded by the 2021 American Rescue Plan Act, which directed over $300 million to Montana broadband projects. Additional funding of $629 million is being distributed by the BEAD and Digital Equity programs under the 2021 Infrastructure Investment and Jobs Act.
Industry supporters argue the state tax credit complements federal programs by making rural investments more appealing financially. AT&T’s Mark Baker stated, “This is designed to be that incremental benefit incentive to building areas where, right now, the [return on investment] doesn’t make sense.” Concerns remain that potential federal budget cuts could impact these initiatives. Learn more about national concerns.
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