Relating to an alcoholic beverage tax credit for certain liquor or malt beverage byproducts donated for agricultural use in this state.
Summary
HB 3336 creates a new tax credit in the Alcoholic Beverage Code for certain taxpayers that donate spent grain byproducts from liquor or malt beverage production for agricultural use in Texas. The credit applies to eligible taxpayers that pay alcoholic beverage taxes and hold specified permits or licenses, as well as taxpayers that pay tax on the first sale of imported liquor or malt beverages. The bill is aimed at encouraging the reuse of brewery and distillery byproducts rather than disposing of them as waste.
The credit is calculated at $0.08 per pound of dry-weight spent grain byproduct donated during a state fiscal year, with donations eligible only if they are used for agricultural purposes such as composting or animal feed and delivered to a location in Texas within 100 miles of where the beverage was produced. The annual credit is capped at the lesser of $30,000 or the taxpayer’s total alcoholic beverage tax liability for that fiscal year. Taxpayers must apply through the Texas Alcoholic Beverage Commission, which is authorized to request information and adopt rules to administer the program.
Impact
The bill adds new Chapter 207 to Title 5 of the Alcoholic Beverage Code and creates a state tax incentive tied to the donation of spent grain byproducts. It affects alcoholic beverage taxpayers, including certain permit and license holders and importers, by allowing them to offset taxes owed under Title 5 when they donate qualifying byproducts for agricultural use. The bill also gives the commission rulemaking and administrative authority to verify eligibility and calculate credits. The credit applies only to donations made on or after the effective date and to taxes originally due on or after that date, with an effective date of September 1, 2025.
Sentiment
The bill appears to have broad support and little visible opposition. It passed the House with strong bipartisan margins on second and third reading, and the Senate State Affairs Committee reported it favorably by a 10-0 vote. The absence of committee testimony in the provided record suggests the measure was not especially controversial and was treated as a practical incentive for recycling agricultural byproducts.
Contention
No major points of contention are reflected in the available materials. The only policy details that could invite scrutiny are the fiscal cost of the tax credit, the $30,000 annual cap, the 100-mile geographic limitation, and the administrative burden of verifying eligible donations and tax liability. Any concerns would likely come from taxpayers, fiscal watchdogs, or administrators focused on revenue impact and implementation, but no specific opposition is shown in the transcript or vote record.
AN ACT to amend Tennessee Code Annotated, Title 43; Title 57 and Title 67, relative to tax credits for alcoholic beverage byproducts donated for agricultural use.
AN ACT to amend Tennessee Code Annotated, Title 43; Title 57 and Title 67, relative to tax credits for alcoholic beverage byproducts donated for agricultural use.
Creates new taxable category of alcoholic beverages called flavored malt beverages, imposes separate rate of taxation on new category pursuant to alcoholic beverages tax and allocates associated revenue.
In licenses and regulations and liquor, alcohol and malt and brewed beverages, further providing for unlawful acts relative to liquor, malt and brewed beverages and licensees.
In licenses and regulations and liquor, alcohol and malt and brewed beverages, further providing for unlawful acts relative to liquor, malt and brewed beverages and licensees.