| 4 | 3 | | |
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| 5 | 4 | | |
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| 6 | 5 | | |
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| 7 | 6 | | |
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| 8 | 7 | | A BILL TO BE ENTITLED |
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| 9 | 8 | | AN ACT |
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| 10 | 9 | | relating to certain expenditures by public institutions of higher |
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| 11 | 10 | | education and university systems that are eligible for certain tax |
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| 12 | 11 | | credits. |
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| 13 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 13 | | SECTION 1. (a) Section 172.102(b), Tax Code, is amended to |
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| 15 | 14 | | read as follows: |
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| 16 | 15 | | (b) Except as provided by Subsection (c), the depreciation |
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| 17 | 16 | | and tax-exempt use provisions of Section 47(c)(2), Internal Revenue |
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| 18 | 17 | | Code, do not apply to costs and expenses incurred by an entity |
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| 19 | 18 | | exempted from the federal income tax under Section 501(a), Internal |
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| 20 | 19 | | Revenue Code, or by an institution of higher education or |
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| 21 | 20 | | university system as defined by Section 61.003, Education Code, and |
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| 22 | 21 | | those costs and expenses are eligible costs and expenses if the |
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| 23 | 22 | | other provisions of Section 47(c)(2), Internal Revenue Code, are |
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| 24 | 23 | | satisfied. |
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| 25 | 24 | | (b) Effective January 1, 2035, Section 172.102(b), Tax |
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| 26 | 25 | | Code, is amended to read as follows: |
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| 27 | 26 | | (b) Except as provided by Subsection (c), the depreciation |
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| 28 | 27 | | and tax-exempt use provisions of Section 47(c)(2), Internal Revenue |
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| 29 | 28 | | Code, do not apply to costs and expenses incurred by an entity |
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| 30 | 29 | | exempted from the federal income tax under Section 501(a), Internal |
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| 31 | 30 | | Revenue Code, and those costs and expenses are eligible costs and |
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| 32 | 31 | | expenses if the other provisions of Section 47(c)(2), Internal |
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| 33 | 32 | | Revenue Code, are satisfied. |
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| 34 | 33 | | SECTION 2. (a) Section 172.102(b), Tax Code, as amended by |
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| 35 | 34 | | Section 1(a) of this Act, applies only to costs and expenses |
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| 36 | 35 | | incurred on or after the effective date of this Act. |
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| 37 | 36 | | (b) Section 172.102(b), Tax Code, as amended by Section 1(b) |
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| 38 | 37 | | of this Act, applies only to costs and expenses incurred on or after |
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| 39 | 38 | | January 1, 2035. |
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| 40 | 39 | | SECTION 3. This Act takes effect January 1, 2026. |
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