Senate Bill No. 1554 introduces a new chapter, Chapter 207, to the Alcoholic Beverage Code, establishing a tax credit for eligible taxpayers who donate certain byproducts from liquor or malt beverage production for agricultural use. The bill defines "eligible taxpayer" as individuals or entities that pay taxes under the Alcoholic Beverage Code and hold specific permits or licenses, or those who pay taxes on imported liquor or malt beverages. The bill specifies that the tax credit amount is calculated based on the weight of spent grain byproducts donated, with a maximum credit limit of $30,000 or the total taxes paid, whichever is lesser.

To claim the credit, taxpayers must first obtain a certificate of eligibility from the commission, which will determine their eligibility and the credit amount. The application process for the credit requires submission of this certificate to the comptroller, who will then award the credit based on the eligibility certificate. The provisions of this chapter apply only to donations made and taxes due on or after the effective date of the Act, which is set for September 1, 2025.

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