| 1 | 1 | | 89R12965 RDS-F |
|---|
| 2 | 2 | | By: Flores, Eckhardt S.B. No. 1554 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to an alcoholic beverage tax credit for certain liquor or |
|---|
| 10 | 10 | | malt beverage byproducts donated for agricultural use in this |
|---|
| 11 | 11 | | state. |
|---|
| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 13 | 13 | | SECTION 1. Title 5, Alcoholic Beverage Code, is amended by |
|---|
| 14 | 14 | | adding Chapter 207 to read as follows: |
|---|
| 15 | 15 | | CHAPTER 207. TAX CREDIT FOR DONATION OF CERTAIN BYPRODUCTS FOR |
|---|
| 16 | 16 | | AGRICULTURAL USE |
|---|
| 17 | 17 | | Sec. 207.01. DEFINITIONS. In this chapter: |
|---|
| 18 | 18 | | (1) "Eligible taxpayer" means a person that: |
|---|
| 19 | 19 | | (A) pays a tax under this title and holds: |
|---|
| 20 | 20 | | (i) a permit under Chapter 14 or 37; or |
|---|
| 21 | 21 | | (ii) a license under Chapter 62, 63, or 74; |
|---|
| 22 | 22 | | or |
|---|
| 23 | 23 | | (B) pays a tax under this title on the first sale |
|---|
| 24 | 24 | | of liquor or a malt beverage that is imported into this state. |
|---|
| 25 | 25 | | (2) "Spent grain byproduct" means the byproduct |
|---|
| 26 | 26 | | material remaining from grain used to produce liquor or malt |
|---|
| 27 | 27 | | beverages. |
|---|
| 28 | 28 | | Sec. 207.02. ELIGIBILITY FOR CREDIT. An eligible taxpayer |
|---|
| 29 | 29 | | is entitled to a credit in the amount and under the conditions |
|---|
| 30 | 30 | | provided by this chapter against taxes paid under this title. |
|---|
| 31 | 31 | | Sec. 207.03. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
|---|
| 32 | 32 | | Subsection (b), the amount of an eligible taxpayer's credit for a |
|---|
| 33 | 33 | | state fiscal year is equal to the product of: |
|---|
| 34 | 34 | | (1) $0.08; and |
|---|
| 35 | 35 | | (2) the number of pounds dry weight of spent grain |
|---|
| 36 | 36 | | byproduct donated by the taxpayer during the state fiscal year: |
|---|
| 37 | 37 | | (A) for agricultural use, including for use in |
|---|
| 38 | 38 | | composting or as animal feed; and |
|---|
| 39 | 39 | | (B) to a location in this state that is not more |
|---|
| 40 | 40 | | than 100 miles from the location where the spent grain byproduct was |
|---|
| 41 | 41 | | used to produce liquor or a malt beverage. |
|---|
| 42 | 42 | | (b) An eligible taxpayer may not claim in a state fiscal |
|---|
| 43 | 43 | | year a credit under this chapter that exceeds the lesser of: |
|---|
| 44 | 44 | | (1) $30,000; or |
|---|
| 45 | 45 | | (2) the total amount of taxes paid by the taxpayer |
|---|
| 46 | 46 | | under this title during the state fiscal year. |
|---|
| 47 | 47 | | Sec. 207.04. CERTIFICATE OF ELIGIBILITY. (a) Before a |
|---|
| 48 | 48 | | taxpayer may apply for a credit under this chapter, the taxpayer |
|---|
| 49 | 49 | | must request a certificate of eligibility from the commission. |
|---|
| 50 | 50 | | (b) On receipt of a request under Subsection (a), the |
|---|
| 51 | 51 | | commission shall: |
|---|
| 52 | 52 | | (1) determine whether the taxpayer is an eligible |
|---|
| 53 | 53 | | taxpayer; and |
|---|
| 54 | 54 | | (2) if the commission determines that the taxpayer is |
|---|
| 55 | 55 | | an eligible taxpayer: |
|---|
| 56 | 56 | | (A) determine the amount of the credit to which |
|---|
| 57 | 57 | | the taxpayer would be entitled under Section 207.03(a), |
|---|
| 58 | 58 | | notwithstanding the limitation prescribed by Subsection (b) of that |
|---|
| 59 | 59 | | section; and |
|---|
| 60 | 60 | | (B) issue the requested certificate of |
|---|
| 61 | 61 | | eligibility to the taxpayer, which must state the amount of the |
|---|
| 62 | 62 | | credit determined under Paragraph (A). |
|---|
| 63 | 63 | | (c) The commission may request from a taxpayer information |
|---|
| 64 | 64 | | reasonably necessary to make a determination under Subsection (b). |
|---|
| 65 | 65 | | (d) The commission may adopt rules and procedures necessary |
|---|
| 66 | 66 | | to implement and administer this section. |
|---|
| 67 | 67 | | Sec. 207.05. APPLICATION FOR CREDIT. (a) A taxpayer must |
|---|
| 68 | 68 | | apply for a credit under this chapter in the manner prescribed by |
|---|
| 69 | 69 | | the comptroller and include with the application a certificate of |
|---|
| 70 | 70 | | eligibility issued under Section 207.04. |
|---|
| 71 | 71 | | (b) The comptroller shall award a credit to a taxpayer who |
|---|
| 72 | 72 | | submits an application that complies with the provisions of this |
|---|
| 73 | 73 | | section in an amount equal to the amount stated on the certificate |
|---|
| 74 | 74 | | of eligibility included with the application, subject to the |
|---|
| 75 | 75 | | limitation prescribed by Section 207.03(b). |
|---|
| 76 | 76 | | (c) The comptroller may adopt rules and procedures |
|---|
| 77 | 77 | | necessary to implement and administer this section. |
|---|
| 78 | 78 | | SECTION 2. A taxpayer may apply for a credit under Chapter |
|---|
| 79 | 79 | | 207, Alcoholic Beverage Code, as added by this Act, only for a |
|---|
| 80 | 80 | | donation made on or after the effective date of this Act. |
|---|
| 81 | 81 | | SECTION 3. Chapter 207, Alcoholic Beverage Code, as added |
|---|
| 82 | 82 | | by this Act, applies only to a tax originally due under Title 5, |
|---|
| 83 | 83 | | Alcoholic Beverage Code, on or after the effective date of this Act. |
|---|
| 84 | 84 | | SECTION 4. This Act takes effect September 1, 2025. |
|---|