TX HB4044

Amends Section 172.102(b) of the Tax Code to exempt public institutions of higher education and university systems from federal depreciation and tax-exempt use provisions under Internal Revenue Code Section 47(c)(2), allowing their rehabilitation expenditures on certified historic structures to qualify for state tax credits

The exemption for public higher education institutions is temporary, automatically expiring on January 1, 2035, at which point the statute reverts to only exempting 501(a) tax-exempt entities

Applies only to costs and expenses incurred on or after the effective date of January 1, 2026

Passed the House on May 2, 2025 (113-24) and the Senate on May 25, 2025 (25-6)