October 22, 2026
Mr. Kelly of Pennsylvania (for himself, Mr. Schneider, Mr. Thompson of Pennsylvania, Ms. Strickland, Mr. Hurd of Colorado, Mr. Larson of Connecticut, and Mr. Riley of New York) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to establish a credit against the excise tax on beer for brewers that donate spent grain for local agricultural use.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Brews to Barns Act of 2026
.
Sec. 2. Brewer spent grain credit
(a) In general
Subpart D of part 1 of subchapter A of chapter 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
5057. Credit for spent grain donated for local agricultural use
(a) In general
There shall be allowed as a credit against the tax imposed by section 5051 for the calendar year on beer brewed by a brewer an amount equal to the product of—
(1)
$0.08, multiplied by
(2)
the number of dry weight pounds of spent grain byproduct contributed or gifted by the brewer during the calendar year to an unrelated person for local agricultural use by such person.
(b) Limitation
The credit allowed under subsection (a) shall not exceed an amount equal to—
(1)
for any period during a calendar year, the total tax imposed for such period by section 5051 on beer brewed and removed by the brewer, and
(2)
for all periods during a calendar year, $35,000.
(c) Definitions and special rules
For purposes of this section—
(1) Local agricultural use
(A) In general
Agricultural use of spent grain shall include use in composting, soil amendment, mushroom cultivation, and as animal feed.
(B) Local
No agricultural use shall be considered local unless such use is not more than 100 miles from the location of the beer brewing process from which the spent grain byproduct was derived.
(2) Spent grain byproduct
(A) In general
The term spent grain byproduct means the byproduct material remaining from grain used by a brewer in the production of beer.
(B) Dry weight pounds
The number of pounds of spent grain byproduct taken into account under subsection (a)(2) shall be determined based on the dry weight of all grain ingredients used in the beer brewing process from which the spent grain byproduct was derived.
(3) Records
Any brewer that makes a claim for credit under this section shall keep such records relating to such claim (in such form, containing such information, and for such period) as the Secretary shall by regulation prescribe, including records of dry grain weight, receipts documenting contributions or gifts of spent grain, and certifications of end-use and location from persons to whom spent grains were contributed or gifted.
(b) Clerical amendment
The table of sections for subpart D of part 1 of subchapter A of chapter 51 of such Code is amended by adding at the end the following new item:
(c) Effective date
The amendments made by this section shall apply to taxes imposed on beer removed after December 31, 2026.