Pennsylvania HB 2234: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in malt beverage tax, further providing for limited tax credits and providing for spent grain donation tax credit.

Bill Text

PRIOR PRINTER'S NO. 2927 PRINTER'S NO. 3583
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2234
Session of
2026
INTRODUCED BY BIZZARRO, FREEMAN, HILL-EVANS, T. DAVIS, MADDEN,
GOUGHNOUR, McNEILL, PROBST, SANCHEZ, RIVERA, KENYATTA,
PASHINSKI, HOHENSTEIN, MAYES, CONKLIN, INGLIS, CEPEDA-
FREYTIZ, PARKER, MALAGARI, BOYD AND SAPPEY, FEBRUARY 20, 2026
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 10, 2026
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for spent grain donation tax credit. IN
MALT BEVERAGE TAX, FURTHER PROVIDING FOR LIMITED TAX CREDITS
AND PROVIDING FOR SPENT GRAIN DONATION TAX CREDIT.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XX-A
SPENT GRAIN DONATION TAX CREDIT
Section 2001-A. Scope of article.
This article relates to a tax credit for the donation of
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spent grain byproduct by qualified taxpayers to eligible
agricultural operations.
Section 2002-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Eligible agricultural operation." An agricultural operation
located no more than 100 miles from an eligible facility that
engages in normal agricultural operation.
"Eligible facility." A facility within this Commonwealth at
which malt or brewed beverages are brewed or manufactured by a
qualified taxpayer and that produces spent grain byproduct as a
result of the brewing or manufacturing process.
"Malt or brewed beverages." Alcoholic beverages, including
beer, lager beer, ale, porter or similar fermented malt liquor,
containing 0.5% or more of alcohol, by whatever name the liquors
may be called.
"Normal agricultural operation." As defined in section 2 of
the act of June 10, 1982 (P.L.454, No.133), referred to as the
Right-to-Farm Law.
"Qualified tax liability." The liability for taxes imposed
under Article XX.
"Qualified taxpayer." A person engaged in the brewing or
manufacturing of malt or brewed beverages for sale and subject
to tax under Article XX.
"Spent grain byproduct." Material remaining from grain used
to produce malt or brewed beverages.
"Tax credit." The spent grain donation tax credit provided
for under this article.
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Section 2003-A. Application and approval of tax credit.
(a) Application.--
(1) A qualified taxpayer may apply to the department for
a tax credit against the tax imposed under Article XX. The
application shall be on a form created by the department.
(2) The application must be submitted to the department
by February 1 of each year for the tax credit claimed for
spent grain byproduct donated to an eligible agricultural
operation during the prior calendar year.
(b) Amount.--A qualified taxpayer shall receive a tax credit
equal to 16¢ multiplied by the number of pounds dry weight of
spent grain byproduct donated by the taxpayer during the taxable
year to an eligible agricultural operation for agricultural use,
not to exceed the lesser of:
(1) $30,000; or
(2) the total amount of the qualified taxpayer's
qualified tax liability for the taxable year in which the
donation was made.
(c) Review and approval.--
(1) The department shall review and approve applications
meeting the requirements of this article by March 20 of each
year.
(2) The department may require information necessary to
document that a facility qualifies as an eligible facility
and the amount of spent grain byproduct donated to an
eligible agricultural operation.
(3) In the review of applications for tax credits, the
department shall consult with the Liquor Control Board with
respect to whether a facility qualifies as an eligible
facility and to review the eligible facility's calculation of
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the amount of spent grain byproduct donated.
(4) Prior to approving an application, the applicant
must have:
(i) Filed all required State tax reports and returns
for all applicable taxable years.
(ii) Paid any balance of State tax due as determined
by assessment or determination by