Texas 2023 - 88th Regular

Texas House Bill HB2859 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R6675 BEF-F
2	2	By: Ashby H.B. No. 2859
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the franchise tax treatment of certain broadband grants
8	8	made for the purposes of broadband deployment in this state.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended
11	11	by adding Section 171.10132 to read as follows:
12	12	Sec. 171.10132. PROVISIONS RELATED TO CERTAIN GRANTS
13	13	RECEIVED FOR BROADBAND DEPLOYMENT IN TEXAS. (a) In this section,
14	14	"qualifying broadband grant" means a grant for broadband deployment
15	15	in this state received by a taxable entity:
16	16	(1) under the Broadband Equity, Access, and Deployment
17	17	Program established under 47 U.S.C. Section 1702;
18	18	(2) under the State Digital Equity Capacity Grant
19	19	Program established under 47 U.S.C. Section 1723;
20	20	(3) under the Digital Equity Competitive Grant Program
21	21	established under 47 U.S.C. Section 1724;
22	22	(4) under the provisions of 47 U.S.C. Section 1741
23	23	providing for middle mile grants;
24	24	(5) under the broadband loan and grant pilot program
25	25	authorized under Section 779, Title VII, Div. A, Consolidated
26	26	Appropriations Act, 2018 (Pub. L. No. 115-141, 132 Stat. 399),
27	27	from funds made available for that program under the heading
28	28	"Distance Learning, Telemedicine, and Broadband Program," "Rural
29	29	Utilities Service," "Rural Development Programs" in Title I,
30	30	Infrastructure Investments and Jobs Appropriations Act (Title I,
31	31	Div. J, Pub. L. No. 117-58, 135 Stat. 1351);
32	32	(6) under Section 905, Division N, Consolidated
33	33	Appropriations Act, 2021 (Pub. L. No. 116-260, 134 Stat. 2136); or
34	34	(7) from a state, territory, tribal government, or
35	35	unit of local government to the extent the grant was:
36	36	(A) funded by amounts provided under 42 U.S.C.
37	37	Section 802, 803, or 804; and
38	38	(B) provided for the stated purposes of making
39	39	investments in broadband infrastructure.
40	40	(b) Notwithstanding any other law, a taxable entity:
41	41	(1) shall exclude from its total revenue, to the
42	42	extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or
43	43	(c)(3), qualifying broadband grant proceeds for the purposes of
44	44	broadband deployment in this state;
45	45	(2) may include as a cost of goods sold under Section
46	46	171.1012 any expense paid using qualifying broadband grant proceeds
47	47	for the purposes of broadband deployment in this state if the
48	48	expense is otherwise includable as a cost of goods sold under that
49	49	section; and
50	50	(3) may include as compensation under Section 171.1013
51	51	any expense paid using qualifying broadband grant proceeds for the
52	52	purposes of broadband deployment in this state if the expense is
53	53	otherwise includable as compensation under that section.
54	54	SECTION 2. This Act applies only to a report originally due
55	55	on or after January 1, 2023.
56	56	SECTION 3. This Act takes effect immediately if it receives
57	57	a vote of two-thirds of all the members elected to each house, as
58	58	provided by Section 39, Article III, Texas Constitution. If this
59	59	Act does not receive the vote necessary for immediate effect, this
60	60	Act takes effect September 1, 2023.