Senate Bill No. 1554 introduces a new chapter, Chapter 207, to the Alcoholic Beverage Code, which establishes 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 is calculated based on the weight of spent grain byproducts donated for agricultural purposes, with a maximum credit limit of $30,000 or the total amount of 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 amount of credit they are entitled to. The application process for the credit requires submission of this certificate along with the application to the comptroller. The provisions of this bill will only apply 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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