I don't know if Kincaid "bailed".
He got hurt in their regular season finale, against Colorado (IIRC, that was their final regular season game).
He played in the P12 game against USC - but he clearly wasn't 100% (and wasn't that much of a factor against USC - and got banged up and missed some time in that one as well). That said, is it likely he COULD participate, even at less than 100%, if he really wanted to play in the Rose Bowl? Probably.
FWIW, that will be a big break for PSU (who's biggest defensive weakness is defending the middle of the field in the passing game, something Kincaid may exploit as well as any TE in the nation - he is a beast when healthy)
If it is possible for a TE to single-handedly win a ball game, Kincaid did it in the regular season game vs USC.