🔴Relating to certain expenditures by public institutions of higher education and university systems that are eligible for certain tax credits
HB 4044
🔴 HB 4044: Tax Credits for University Building Restorations
What it says it does:
HB 4044 lets public universities and university systems qualify for the state’s Historic Preservation Tax Credit program. It is framed as a way to help restore historic campus buildings without relying on new appropriations.
What it actually changes:
The bill reopens a tax credit window from 2026 through 2035 that allows universities, which are already tax-exempt, to treat renovation costs as eligible for state tax credits. Those credits can be sold to corporations that owe state taxes. The Legislative Budget Board found this will reduce the Property Tax Relief Fund and require General Revenue to backfill the Foundation School Program.
Who is pushing for it:
Rep. Morgan Meyer authored the bill. The Texas State University System’s chief financial officer testified in both chambers supporting the measure.
Who benefits:
Universities gain a new funding tool and lower project costs. Contractors and consultants in historic restoration gain work from new eligible projects. Corporations that buy transferable credits get to lower their tax obligations.
Who gets left out or exposed:
Taxpayers cover the backfill cost. Smaller colleges or communities without historic buildings see no benefit. The public loses visibility into which projects are funded because these credits operate off-budget and require no new reporting or oversight.
Why this matters long term:
This bill normalizes giving tax-exempt institutions off-budget credits funded by the public. It sets precedent for similar carveouts and makes school finance more dependent on General Revenue. Oversight stays limited while financial obligations continue to grow.
What to watch next:
Whether the 2035 sunset becomes permanent, how many credits universities claim, and whether other agencies start seeking the same carveout. Watch the impact on the Property Tax Relief Fund and Foundation School Program over time.
Bottom line:
HB 4044 looks like a preservation effort, but it shifts taxpayer money into a new pipeline with little oversight. It benefits universities and contractors while leaving Texans with long-term costs that are harder to track.
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