alcohol tax credit for donating spent grain to farms

The text as introduced · 648 words

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.