H.R. 10877: Brews to Barns Act of 2026

This bill would create a new federal tax credit for breweries that give away spent grain, which is the leftover grain material from beer production, for nearby agricultural use.

What the credit would do

Under the bill, a brewer could claim a credit against the federal beer excise tax for each pound of spent grain it donates or gives to an unrelated person for local agricultural use. The credit would be:

• 8 cents per dry pound of spent grain donated.

• Limited so it cannot be larger than the brewer’s beer excise tax for that period.

• Capped at $35,000 per year for each brewer.

What counts as local agricultural use

The bill says the spent grain must be used for agricultural purposes within 100 miles of the brewery. It specifically includes use for:

• Composting

• Soil amendment

• Mushroom cultivation

• Animal feed

What counts as spent grain

The bill defines spent grain as the material left over from grain used to make beer. The amount counted for the credit would be based on the dry weight of the grain ingredients used in brewing.

Recordkeeping requirements

Brewers claiming the credit would have to keep records as required by the Treasury Department. The bill says these records must include things like:

• Dry grain weight

• Receipts showing the spent grain was contributed or gifted

• Certifications showing how and where the spent grain was ultimately used

When it would take effect

The credit would apply to beer removed after December 31, 2026.

Relevant Companies

• BUD - Anheuser-Busch InBev could be indirectly affected through its U.S. brewing operations if those facilities donate spent grain and claim the credit.

• TAP - Molson Coors could be indirectly affected by the tax credit for breweries that manage spent grain donations.

• SAM - The Boston Beer Company could be affected if its breweries qualify for the credit by donating spent grain locally.