Tex. Tax Code § 171.10132

(a) In this section, "qualifying broadband grant" means a grant for broadband deployment in this state received by a taxable entity:

(1) under the Broadband Equity, Access, and Deployment Program established under 47 U.S.C. Section 1702;

(2) under the State Digital Equity Capacity Grant Program established under 47 U.S.C. Section 1723;

(3) under the Digital Equity Competitive Grant Program established under 47 U.S.C. Section 1724;

(4) under the provisions of 47 U.S.C. Section 1741 providing for middle mile grants;

(5) under the broadband loan and grant pilot program authorized under Section 779, Title VII, Div. A, Consolidated Appropriations Act, 2018 (Pub. L. No. 115-141, 132 Stat. 399), from funds made available for that program under the heading "Distance Learning, Telemedicine, and Broadband Program," "Rural Utilities Service," "Rural Development Programs" in Title I, Infrastructure Investments and Jobs Appropriations Act (Title I, Div. J, Pub. L. No. 117-58, 135 Stat. 1351);

(6) under Section 905, Division N, Consolidated Appropriations Act, 2021 (Pub. L. No. 116-260, 134 Stat. 2136);

(7) from a state, territory, tribal government, or unit of local government to the extent the grant was:

(A) funded by amounts provided under 42 U.S.C. Section 802, 803, or 804; and

(B) provided for the stated purposes of making investments in broadband infrastructure; or

(8) from the comptroller under Subchapter S, Chapter 403, Government Code, or Chapter 490I of that code.

(a-1) For purposes of Subsection (a)(8), a reimbursement award received by a taxable entity under Subchapter S, Chapter 403, Government Code, is considered a grant for broadband development in this state.

(b) Notwithstanding any other law, a taxable entity:

(1) shall exclude from its total revenue, to the extent included under Section 171.1011(c)(1)(A), (c)(2)(A), or (c)(3), qualifying broadband grant proceeds for the purposes of broadband deployment in this state;

(2) may include as a cost of goods sold under Section 171.1012 any expense paid using qualifying broadband grant proceeds for the purposes of broadband deployment in this state if the expense is otherwise includable as a cost of goods sold under that section; and

(3) may include as compensation under Section 171.1013 any expense paid using qualifying broadband grant proceeds for the purposes of broadband deployment in this state if the expense is otherwise includable as compensation under that section.