S.B. No. 263 amends Section 171.1012(o) of the Texas Tax Code to clarify the computation of the cost of goods sold for television and radio broadcasters for franchise tax purposes. The bill specifies that if a taxable entity's principal business activity includes television or radio broadcasting, along with film or television production and the distribution of tangible personal property, it may elect to subtract cost of goods sold. The costs eligible for subtraction include expenses related to the acquisition, production, or use of property, as well as depreciation and amortization.

The bill introduces new definitions and clarifications, including the definition of "television or radio broadcasting" as activities conducted under a broadcast license issued by the Federal Communications Commission and regulated under specific federal regulations. Additionally, it states that the amendment serves as a clarification of existing law, ensuring that it does not imply any inconsistency with prior regulations. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Tax Code 171.1012 (Tax Code 171)
Senate Committee Report: Tax Code 171.1012 (Tax Code 171)
Engrossed: Tax Code 171.1012 (Tax Code 171)
House Committee Report: Tax Code 171.1012 (Tax Code 171)
Enrolled: Tax Code 171.1012 (Tax Code 171)