By Glenn Ricart and Lee Davenport

Across the US, local leaders drive efforts for long-term growth and economic development by investing in infrastructure that supports future-ready communities. Federal programs, such as BEAD, can provide essential resources. Recent federal tax incentives introduced in 2025 add new momentum for broadband infrastructure deployment by accelerating private sector investment in fiber networks.

Harris County, Texas, created its Broadband Task Force to move beyond strategy and focus on execution, including bridging the digital divide and enhancing network resiliency. In partnership with US Ignite, the county developed the Harris County Broadband Roadmap, which outlines real projects and guides smart, long-term investment. With a focus on the benefits of the new legislation, Harris County and similar communities can gain traction and bring in new private-sector partners.

Federal programs under NTIA’s Internet for All initiative, including the BEAD program, support the deployment of broadband in areas that are unserved or underserved. New legislation strengthens these efforts by improving the financial environment for broadband builds.

2025 Tax Rules That Boost Fiber Projects

The following provisions remove barriers to fiber builds and improve returns for public-private partnerships. Communities that completed feasibility work or secured access to middle-mile routes now hold a clear advantage in moving forward.

• Bonus Depreciation Restored and Made Permanent
  Businesses can immediately deduct 100 percent of the cost of eligible assets placed in service after January 19, 2025. While the provision excludes fiber cable, conduit, and towers, it covers electronics, machinery, and other components with a useful life of under 20 years. This update encourages faster and larger investments in fiber infrastructure, particularly for essential equipment such as routers, switches, and installation hardware. This provision gives private-sector partners a stronger case to invest in citywide fiber networks and move quickly on fiber-ready projects.
• Section 179 Expensing Increased
  The deduction limit rises to $2.5 million from $1.16 million with a phase-out threshold of $4 million, up from $2.89 million. This provision helps smaller and mid-sized deployments manage capital expenses by allowing for the upfront expensing of qualified equipment. Local governments, nonprofits, and regional providers, including utility co-ops and independent ISPs, gain more flexibility to invest in network components without facing delayed or fragmented cost recovery. 
• Opportunity Zones Made Permanent
  By making the Opportunity Zone program permanent, the Bill offers long-term certainty for broadband investment in underserved and economically distressed areas. Fiber projects located in these zones can attract capital with greater predictability, improving the financial outlook for both private developers and public-private partnerships. Project teams with complete planning and permitting cycles can use this provision to unlock long-horizon buildouts in high-need communities.

US Ignite partners with communities to translate strategy into deployment, including those of any size nationwide. The US Ignite team provides technical, financial, and planning support tailored to local priorities and needs.

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