Tennessee legislation · 114th General Assembly

Tennessee HB1901: AN ACT to amend Tennessee Code Annotated, Title 43; Title 57 and Title 67, relative to tax credits for alcoholic beverage byproducts donated for agricultural use.

Status: In committee, April 15, 2026

Fiscal Summary STATE GOVERNMENTREVENUEGeneral FundFY27-28 & Subsequent Years($240,000) Bill Summary Effective July 1, 2027, this bill creates a tax credit for an eligible taxpayer who is the holder of a manufacturer license to brew high alcohol content beer or the holder of a permit to brew or manufacture beer in this state against taxpayer's excise tax liability. The amount of such credit for a state fiscal year is equal to the product of eight cents, and the number of pounds dry weight of spent grain byproduct donated by the taxpayer during the state fiscal year in the following situations:  For agricultural use, including for use in composting or as animal feed. To a recipient located in this state that is not more than 100 miles from the location where the spent grain byproduct was used to produce beer, including high alcohol content beer. However, this bill prohibits an eligible taxpayer from claiming in a state fiscal year a credit that exceeds the lesser of $30,000 or the total amount of excise taxes paid by the taxpayer during the state fiscal year. APPLICATION FOR CREDIT This bill requires a taxpayer to apply for a credit in the manner prescribed by the department of revenue. The department may request from a taxpayer information reasonably necessary to determine whether the taxpayer is an eligible taxpayer and, if the taxpayer is an eligible taxpayer, the amount of the credit. RULEMAKING This bill authorizes the department of revenue, in consultation with the department of agriculture, to promulgate rules to effectuate this bill.