Bill > SB1554

This bill creates a new tax credit program for alcoholic beverage producers (like breweries and distilleries) who donate their spent grain byproducts for agricultural purposes within Texas. Specifically, eligible taxpayers who hold certain permits or licenses and donate spent grain (the leftover grain material from producing liquor or malt beverages) can receive a tax credit of $0.08 per pound of dry weight donated, up to a maximum of $30,000 per state fiscal year. To claim the credit, producers must first request a certificate of eligibility from the commission, which will verify their status and calculate the potential credit amount. The donation must be used for agricultural purposes like composting or animal feed, and must be donated to a location within 100 miles of where the grain was originally processed. The credit cannot exceed the total amount of taxes the producer has paid under the Alcoholic Beverage Code during that fiscal year. The bill will take effect on September 1, 2025, and applies only to donations and tax credits for taxes due on or after that date, encouraging producers to repurpose what would otherwise be waste material while providing a financial incentive.