By: Meyer, et al. (Senate Sponsor - Creighton) H.B. No. 4044
         (In the Senate - Received from the House May 5, 2025;
  May 6, 2025, read first time and referred to Committee on Finance;
  May 21, 2025, reported favorably by the following vote:  Yeas 13,
  Nays 0; May 21, 2025, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
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.
 
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