S.B. No. 1405 is a legislative bill aimed at improving access to broadband services in Texas while reducing the tax burden on Internet services. The bill redefines "qualifying broadband service" to align with the definition in Section 490I.0101, eliminating previous speed requirements, and updates the definition of "unserved area" to indicate a lack of access to qualifying broadband service. It mandates the comptroller to publish annual statistics on broadband service applications and reimbursements and establishes a program for awarding contracts, grants, and loans to enhance broadband access, particularly in unserved and underserved regions.

Additionally, the bill modifies tax provisions to clarify that Internet access services are not considered taxable services and introduces new definitions for "qualifying broadband grant," expanding criteria for financial incentives for broadband infrastructure projects. It also repeals outdated provisions. Importantly, the bill stipulates that any tax liabilities incurred before the Act's effective date will remain under the previous law, with amendments to Section 171.10132 of the Tax Code applying only to reports due on or after January 1, 2026. The Act is set to take effect on July 1, 2025, contingent upon a two-thirds majority vote in both legislative houses, or on September 1, 2025, if the vote is not achieved.

Statutes affected:
Introduced: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 171, Government Code 403, Tax Code 151)
Senate Committee Report: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 171, Government Code 403, Tax Code 151)
Engrossed: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 171, Government Code 403, Tax Code 151)
House Committee Report: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 171, Government Code 403, Tax Code 151)
Enrolled: Government Code 403.553, Tax Code 151.00394, Tax Code 151.0101, Tax Code 171.10132 (Tax Code 171, Government Code 403, Tax Code 151)