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 taxable entities engaged in film or television production, television broadcasting, or radio broadcasting. The bill specifies that if such entities elect to subtract cost of goods sold, the costs will include expenses related to the acquisition, production, or use of property, as well as depreciation and amortization. Notably, the bill introduces the definition of "television or radio broadcasting" as activities conducted under a broadcast license issued by the Federal Communications Commission, regulated under specific federal regulations.

The amendment is characterized as a clarification of existing law, ensuring that it does not imply any inconsistency with prior statutes. The bill is set to take effect immediately upon receiving a two-thirds majority vote from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

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)