Texas 2023 - 88th Regular

Texas Senate Bill SB1243 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 1243
2	2
3	3
4	4	AN ACT
5	5	relating to the franchise tax treatment of certain broadband grants
6	6	made for the purposes of broadband deployment in this state.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter C, Chapter 171, Tax Code, is amended
9	9	by adding Section 171.10132 to read as follows:
10	10	Sec. 171.10132. PROVISIONS RELATED TO CERTAIN GRANTS
11	11	RECEIVED FOR BROADBAND DEPLOYMENT IN TEXAS. (a) In this section,
12	12	"qualifying broadband grant" means a grant for broadband deployment
13	13	in this state received by a taxable entity:
14	14	(1) under the Broadband Equity, Access, and Deployment
15	15	Program established under 47 U.S.C. Section 1702;
16	16	(2) under the State Digital Equity Capacity Grant
17	17	Program established under 47 U.S.C. Section 1723;
18	18	(3) under the Digital Equity Competitive Grant Program
19	19	established under 47 U.S.C. Section 1724;
20	20	(4) under the provisions of 47 U.S.C. Section 1741
21	21	providing for middle mile grants;
22	22	(5) under the broadband loan and grant pilot program
23	23	authorized under Section 779, Title VII, Div. A, Consolidated
24	24	Appropriations Act, 2018 (Pub. L. No. 115-141, 132 Stat. 399),
25	25	from funds made available for that program under the heading
26	26	"Distance Learning, Telemedicine, and Broadband Program," "Rural
27	27	Utilities Service," "Rural Development Programs" in Title I,
28	28	Infrastructure Investments and Jobs Appropriations Act (Title I,
29	29	Div. J, Pub. L. No. 117-58, 135 Stat. 1351);
30	30	(6) under Section 905, Division N, Consolidated
31	31	Appropriations Act, 2021 (Pub. L. No. 116-260, 134 Stat. 2136); or
32	32	(7) from a state, territory, tribal government, or
33	33	unit of local government to the extent the grant was:
34	34	(A) funded by amounts provided under 42 U.S.C.
35	35	Section 802, 803, or 804; and
36	36	(B) provided for the stated purposes of making
37	37	investments in broadband infrastructure.
38	38	(b) Notwithstanding any other law, a taxable entity:
39	39	(1) shall exclude from its total revenue, to the
40	40	extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or
41	41	(c)(3), qualifying broadband grant proceeds for the purposes of
42	42	broadband deployment in this state;
43	43	(2) may include as a cost of goods sold under Section
44	44	171.1012 any expense paid using qualifying broadband grant proceeds
45	45	for the purposes of broadband deployment in this state if the
46	46	expense is otherwise includable as a cost of goods sold under that
47	47	section; and
48	48	(3) may include as compensation under Section 171.1013
49	49	any expense paid using qualifying broadband grant proceeds for the
50	50	purposes of broadband deployment in this state if the expense is
51	51	otherwise includable as compensation under that section.
52	52	SECTION 2. This Act applies only to a report originally due
53	53	on or after January 1, 2023.
54	54	SECTION 3. This Act takes effect immediately if it receives
55	55	a vote of two-thirds of all the members elected to each house, as
56	56	provided by Section 39, Article III, Texas Constitution. If this
57	57	Act does not receive the vote necessary for immediate effect, this
58	58	Act takes effect September 1, 2023.
59	59	______________________________ ______________________________
60	60	President of the Senate Speaker of the House
61	61	I hereby certify that S.B. No. 1243 passed the Senate on
62	62	April 18, 2023, by the following vote: Yeas 30, Nays 1.
63	63	______________________________
64	64	Secretary of the Senate
65	65	I hereby certify that S.B. No. 1243 passed the House on
66	66	May 9, 2023, by the following vote: Yeas 132, Nays 12, one
67	67	present not voting.
68	68	______________________________
69	69	Chief Clerk of the House
70	70	Approved:
71	71	______________________________
72	72	Date
73	73	______________________________
74	74	Governor