Relating to certain expenditures by public institutions of higher education and university systems that are eligible for certain tax credits.

HB 4044 modifies Texas tax code provisions to clarify which costs at public colleges and universities qualify for federal tax credits. It allows institutions of higher education and university systems (as defined in Texas Education Code §61.003) to claim tax credits for certain expenditures that would otherwise be excluded under federal rules. The bill changes the tax code to remove an exception for costs related to entities exempt under federal tax code §501(a), effective January 1, 2035. This ensures these institutions can fully utilize eligible tax credits for qualifying expenses incurred after the effective dates (2026 for current changes, 2035 for the full modification).