HB4044 - Relating to certain expenditures by public institutions of higher education and university systems that are eligible for certain tax credits.

      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