Texas HB4044 modifies tax code to exclude certain expenditures by public higher education institutions from depreciation and tax-exempt use.

Texas HB4044 amends the state tax code to exclude certain expenditures by public institutions of higher education and university systems from the depreciation and tax-exempt use provisions of Section 47(c)(2), Internal Revenue Code. This change applies to costs and expenses incurred by entities exempted from federal income tax under Section 501(a), Internal Revenue Code, or by institutions defined in the Education Code. The amendments take effect on January 1, 2026, with further changes applying from January 1, 2035.

Texas HB4044 modifies tax code to exclude certain expenditures by public higher education institutions from depreciation and tax-exempt use.

Texas HB4044 amends the state tax code to exclude certain expenditures by public institutions of higher education and university systems from the depreciation and tax-exempt use provisions of Section 47(c)(2), Internal Revenue Code. This change applies to costs and expenses incurred by entities exempted from federal income tax under Section 501(a), Internal Revenue Code, or by institutions defined in the Education Code. The amendments take effect on January 1, 2026, with further changes applying from January 1, 2035.