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89(R) HB 4044 - Enrolled version - Bill Text
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