The bill, H.B. No. 2838, aims to enhance access to and reduce taxation on Internet services in Texas. Key amendments include changing the definition of "broadband service" to require a minimum download speed of 100 megabits per second and an upload speed of 20 megabits per second, as well as establishing criteria for classifying broadband serviceable locations as unserved, underserved, or served. The broadband development office is tasked with creating and publishing a map of these classifications and is authorized to award grants and financial incentives for projects that expand broadband access, particularly in unserved and underserved areas.

Additionally, the bill modifies tax code provisions to exclude "Internet access service" from the definition of taxable services, thereby reducing the tax burden on such services. It also introduces new definitions for qualifying broadband grants and clarifies that reimbursements awarded under specific government programs are considered grants for broadband development. The bill repeals certain existing provisions related to broadband funding and establishes that the changes will not affect tax liabilities incurred before the effective date of the Act, which is set for July 1, 2025, contingent upon legislative approval.

Statutes affected:
Introduced: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 171, Tax Code 151, Government Code 403)