89R12965 RDS-F
By: Flores, Eckhardt S.B. No. 1554
A BILL TO BE ENTITLED
AN ACT
relating to an alcoholic beverage tax credit for certain liquor or
malt beverage byproducts donated for agricultural use in this
state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 5, Alcoholic Beverage Code, is amended by
adding Chapter 207 to read as follows:
CHAPTER 207. TAX CREDIT FOR DONATION OF CERTAIN BYPRODUCTS FOR
AGRICULTURAL USE
Sec. 207.01. DEFINITIONS. In this chapter:
(1) "Eligible taxpayer" means a person that:
(A) pays a tax under this title and holds:
(i) a permit under Chapter 14 or 37; or
(ii) a license under Chapter 62, 63, or 74;
or
(B) pays a tax under this title on the first sale
of liquor or a malt beverage that is imported into this state.
(2) "Spent grain byproduct" means the byproduct
material remaining from grain used to produce liquor or malt
beverages.
Sec. 207.02. ELIGIBILITY FOR CREDIT. An eligible taxpayer
is entitled to a credit in the amount and under the conditions
provided by this chapter against taxes paid under this title.
Sec. 207.03. AMOUNT OF CREDIT; LIMITATION. (a) Subject to
Subsection (b), the amount of an eligible taxpayer's credit for a
state fiscal year is equal to the product of:
(1) $0.08; and
(2) the number of pounds dry weight of spent grain
byproduct donated by the taxpayer during the state fiscal year:
(A) for agricultural use, including for use in
composting or as animal feed; and
(B) to a location in this state that is not more
than 100 miles from the location where the spent grain byproduct was
used to produce liquor or a malt beverage.
(b) An eligible taxpayer may not claim in a state fiscal
year a credit under this chapter that exceeds the lesser of:
(1) $30,000; or
(2) the total amount of taxes paid by the taxpayer
under this title during the state fiscal year.
Sec. 207.04. CERTIFICATE OF ELIGIBILITY. (a) Before a
taxpayer may apply for a credit under this chapter, the taxpayer
must request a certificate of eligibility from the commission.
(b) On receipt of a request under Subsection (a), the
commission shall:
(1) determine whether the taxpayer is an eligible
taxpayer; and
(2) if the commission determines that the taxpayer is
an eligible taxpayer:
(A) determine the amount of the credit to which
the taxpayer would be entitled under Section 207.03(a),
notwithstanding the limitation prescribed by Subsection (b) of that
section; and
(B) issue the requested certificate of
eligibility to the taxpayer, which must state the amount of the
credit determined under Paragraph (A).
(c) The commission may request from a taxpayer information
reasonably necessary to make a determination under Subsection (b).
(d) The commission may adopt rules and procedures necessary
to implement and administer this section.
Sec. 207.05. APPLICATION FOR CREDIT. (a) A taxpayer must
apply for a credit under this chapter in the manner prescribed by
the comptroller and include with the application a certificate of
eligibility issued under Section 207.04.
(b) The comptroller shall award a credit to a taxpayer who
submits an application that complies with the provisions of this
section in an amount equal to the amount stated on the certificate
of eligibility included with the application, subject to the
limitation prescribed by Section 207.03(b).
(c) The comptroller may adopt rules and procedures
necessary to implement and administer this section.
SECTION 2. A taxpayer may apply for a credit under Chapter
207, Alcoholic Beverage Code, as added by this Act, only for a
donation made on or after the effective date of this Act.
SECTION 3. Chapter 207, Alcoholic Beverage Code, as added
by this Act, applies only to a tax originally due under Title 5,
Alcoholic Beverage Code, on or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2025.