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Texas Legislature· HB 4044See remarks for effective date

Relating to certain expenditures by public institutions of higher education and university systems that are eligible for certain tax credits, the official text

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H.B. No. 4044

AN ACT

relating to certain expenditures by public institutions of higher

education and university systems that are eligible for certain tax

credits.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) Section 172.102(b), Tax Code, is amended to

read as follows:

(b) Except as provided by Subsection (c), the depreciation

and tax-exempt use provisions of Section 47(c)(2), Internal Revenue

Code, do not apply to costs and expenses incurred by an entity

exempted from the federal income tax under Section 501(a), Internal

Revenue Code, or by an institution of higher education or

university system as defined by Section 61.003, Education Code, and

those costs and expenses are eligible costs and expenses if the

other provisions of Section 47(c)(2), Internal Revenue Code, are

satisfied.

(b) Effective January 1, 2035, Section 172.102(b), Tax

Code, is amended to read as follows:

(b) Except as provided by Subsection (c), the depreciation

and tax-exempt use provisions of Section 47(c)(2), Internal Revenue

Code, do not apply to costs and expenses incurred by an entity

exempted from the federal income tax under Section 501(a), Internal

Revenue Code, and those costs and expenses are eligible costs and

expenses if the other provisions of Section 47(c)(2), Internal

Revenue Code, are satisfied.

SECTION 2. (a) Section 172.102(b), Tax Code, as amended by

Section 1(a) of this Act, applies only to costs and expenses

incurred on or after the effective date of this Act.

(b) Section 172.102(b), Tax Code, as amended by Section 1(b)

of this Act, applies only to costs and expenses incurred on or after

January 1, 2035.

SECTION 3. This Act takes effect January 1, 2026.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 4044 was passed by the House on May 2,

2025, by the following vote: Yeas 113, Nays 24, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 4044 was passed by the Senate on May

25, 2025, by the following vote: Yeas 25, Nays 6.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor
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