House Bill 4044, passed during the 89th Texas legislative session in 2025, marks a meaningful shift for public universities across the state. For the first time, state institutions of higher education will be able to directly use the Texas Historic Preservation Tax Credit program (“Texas HTC”) for campus rehabilitation work. By removing prior limitations that restricted public university eligibility, the change in law opens the door for campuses to reinvest in their historic buildings in a more practical, financially sustainable way for the 2026-2035 fiscal years. Clocktower Tax Credits, LLC, a national broker/syndicator of state tax credits, is already bringing millions of dollars of private money to this effort.
The Texas HTC program is one of the strongest in the country for historic rehabilitation projects of all sizes. At its core, the program offers an uncapped 25% tax credit on qualified rehabilitation expenses, and what makes this especially valuable for public institutions is the flexibility to monetize those credits. Since universities themselves are often tax-exempt, they can now generate and transfer the state credits and convert them into much-needed project financing. This incentivizes critical public-private partnerships, now allowi
ng all public and private universities and colleges across the Lone Star state to unlock funds for restoring historically significant buildings.
Program participation still requires meticulous planning for public institutional users. Projects must meet established preservation standards, secure historic designation if they don’t already have it, and move through a three-phase application and award process with the Texas Historical Commission. But once universities gain experience completing this historic rehabilitation process, this program represents a significant resource to protect their critical heritage while meeting modern needs, ensuring that the buildings shaping student experiences today will still be standing for generations to come.
Clocktower Tax Credits continues to support private and public universities in Texas and beyond for their state tax credit syndication needs, including monetizing state tax credits in full and providing ideas for early-staged rehabilitation projects and campus-wide strategy. For inquiries about this important new legal change or to discuss buying or selling State tax credits, please contact David Curtis at (978) 440-0742 or email him at DCurtis@ClocktowerTC.com for assistance.