HB 4044

relating to certain expenditures by public institutions of higher
education and university systems that are eligible for certain tax
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  (a)  Section 172.102(b), Tax Code, is amended to
(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
(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
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
SECTION 3.  This Act takes effect January 1, 2026.