Texas 2023 88th Regular

Texas House Bill HB2859 Comm Sub / Bill

Filed 04/28/2023

                    88R6675 BEF-F
 By: Ashby H.B. No. 2859


 A BILL TO BE ENTITLED
 AN ACT
 relating to the franchise tax treatment of certain broadband grants
 made for the purposes of broadband deployment in this state.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subchapter C, Chapter 171, Tax Code, is amended
 by adding Section 171.10132 to read as follows:
 Sec. 171.10132.  PROVISIONS RELATED TO CERTAIN GRANTS
 RECEIVED FOR BROADBAND DEPLOYMENT IN TEXAS. (a) In this section,
 "qualifying broadband grant" means a grant for broadband deployment
 in this state received by a taxable entity:
 (1)  under the Broadband Equity, Access, and Deployment
 Program established under 47 U.S.C. Section 1702;
 (2)  under the State Digital Equity Capacity Grant
 Program established under 47 U.S.C. Section 1723;
 (3)  under the Digital Equity Competitive Grant Program
 established under 47 U.S.C. Section 1724;
 (4)  under the provisions of 47 U.S.C. Section 1741
 providing for middle mile grants;
 (5)  under the broadband loan and grant pilot program
 authorized under Section 779, Title VII, Div. A, Consolidated
 Appropriations Act, 2018 (Pub. L. No. 115-141, 132 Stat. 399),
 from funds made available for that program under the heading
 "Distance Learning, Telemedicine, and Broadband Program," "Rural
 Utilities Service," "Rural Development Programs" in Title I,
 Infrastructure Investments and Jobs Appropriations Act (Title I,
 Div. J, Pub. L. No. 117-58, 135 Stat. 1351);
 (6)  under Section 905, Division N, Consolidated
 Appropriations Act, 2021 (Pub. L. No. 116-260, 134 Stat. 2136); or
 (7)  from a state, territory, tribal government, or
 unit of local government to the extent the grant was:
 (A)  funded by amounts provided under 42 U.S.C.
 Section 802, 803, or 804; and
 (B)  provided for the stated purposes of making
 investments in broadband infrastructure.
 (b)  Notwithstanding any other law, a taxable entity:
 (1)  shall exclude from its total revenue, to the
 extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or
 (c)(3), qualifying broadband grant proceeds for the purposes of
 broadband deployment in this state;
 (2)  may include as a cost of goods sold under Section
 171.1012 any expense paid using qualifying broadband grant proceeds
 for the purposes of broadband deployment in this state if the
 expense is otherwise includable as a cost of goods sold under that
 section; and
 (3)  may include as compensation under Section 171.1013
 any expense paid using qualifying broadband grant proceeds for the
 purposes of broadband deployment in this state if the expense is
 otherwise includable as compensation under that section.
 SECTION 2.  This Act applies only to a report originally due
 on or after January 1, 2023.
 SECTION 3.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2023.