House Bill 1901 introduces a new chapter to the Tennessee Code Annotated, specifically Title 57, which establishes a tax credit for eligible taxpayers who donate spent grain byproducts from beer production for agricultural use. The bill defines "eligible taxpayer" as holders of manufacturer licenses for high alcohol content beer or permits to brew beer in Tennessee. It specifies that these taxpayers can receive a credit against their excise tax liability, calculated at eight cents per pound of spent grain donated, with a maximum credit limit of $30,000 or the total excise taxes paid during the fiscal year, whichever is lesser.

Additionally, the bill mandates that taxpayers must apply for this credit in a manner prescribed by the Department of Revenue, which may request necessary information to verify eligibility and determine the credit amount. The Department, in consultation with the Department of Agriculture, is also authorized to promulgate rules to implement this chapter. Furthermore, the bill amends Section 67-4-2009 to allow a credit against the tax imposed in accordance with the new provisions in Title 57, Chapter 8. The act will take effect upon becoming law for rule promulgation purposes, while other provisions will take effect on July 1, 2027.

Statutes affected:
Introduced: 67-4-2009