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