Relating to an alcoholic beverage tax credit for certain liquor or malt beverage byproducts donated for agricultural use in this state.
Impact
If enacted, SB 1554 will amend the Alcoholic Beverage Code by establishing new provisions concerning tax credits related to the donation of byproducts. This bill aims to foster sustainable practices within the beverage industry by encouraging manufacturers to contribute to local agriculture, potentially increasing the availability of feed and compost while reducing waste. The bill takes effect on September 1, 2025, and applies only to donations made after this date, indicating a forward-looking approach to environmental responsibility and agricultural support.
Summary
Senate Bill 1554 introduces a tax credit mechanism aimed at incentivizing the donation of certain byproducts from liquor and malt beverage production for agricultural purposes in the state of Texas. The bill defines eligible taxpayers as those who are licensed under the Alcoholic Beverage Code and who produce byproducts, such as spent grain, that can be used for composting or as animal feed. The credit is set at $0.08 per pound of byproduct donated, with a cap of $30,000 or the total amount of taxes the taxpayer has paid, whichever is lower, thus promoting both economic and environmental benefits through waste reduction and agricultural enhancements.