Bill > HB3336

This bill creates a new tax credit program for alcoholic beverage producers who donate their spent grain byproducts (the leftover grain material from brewing or distilling) for agricultural purposes within Texas. Eligible taxpayers, which include permit and license holders who produce liquor or malt beverages, can claim a credit of $0.08 per pound of spent grain donated for uses like composting or animal feed, but only if the donation is to a location within 100 miles of where the byproduct was originally produced. The tax credit is capped at either $30,000 per state fiscal year or the total amount of alcohol-related taxes paid by the taxpayer during that year, whichever is less. To claim the credit, taxpayers must apply through the state commission, which may request additional information to verify eligibility. The bill will take effect on September 1, 2025, and credits can only be claimed for donations made on or after that date, applying to taxes due under the Alcoholic Beverage Code from that point forward.