The bill 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 in relation to the franchise tax. It specifies that taxable entities engaged in film or television production, television broadcasting, or radio broadcasting can elect to subtract their cost of goods sold. The amendment includes the addition of definitions and clarifications regarding what constitutes "television or radio broadcasting," specifically referencing licenses issued by the Federal Communications Commission and the relevant regulations.

Additionally, the bill emphasizes that the changes made are intended as a clarification of existing law, ensuring that there is no inconsistency with prior interpretations. The act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature, or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Tax Code 171.1012 (Tax Code 171)