SB1554 - Relating to an alcoholic beverage tax credit for certain liquor or malt beverage byproducts donated for agricultural use in this state.

  89R12965 RDS-F     By: Flores, Eckhardt S.B. No. 1554       A BILL TO BE ENTITLED   AN ACT   relating to an alcoholic beverage tax credit for certain liquor or   malt beverage byproducts donated for agricultural use in this   state.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 5, Alcoholic Beverage Code, is amended by   adding Chapter 207 to read as follows:   CHAPTER 207.   TAX CREDIT FOR DONATION OF CERTAIN BYPRODUCTS FOR   AGRICULTURAL USE           Sec. 207.01.  DEFINITIONS. In this chapter:                 (1)  "Eligible taxpayer" means a person that:                         (A)  pays a tax under this title and holds:                             (i)  a permit under Chapter 14 or 37; or                             (ii)     a license under Chapter 62, 63, or 74;   or                         (B)     pays a tax under this title on the first sale   of liquor or a malt beverage that is imported into this state.                 (2)     "Spent grain byproduct" means the byproduct   material remaining from grain used to produce liquor or malt   beverages.           Sec.   207.02.     ELIGIBILITY FOR CREDIT. An eligible taxpayer   is entitled to a credit in the amount and under the conditions   provided by this chapter against taxes paid under this title.             Sec.   207.03.     AMOUNT OF CREDIT; LIMITATION.   (a)   Subject to   Subsection (b), the amount of an eligible taxpayer's credit for a   state fiscal year is equal to the product of:                 (1)  $0.08; and                 (2)     the number of pounds dry weight of spent grain   byproduct donated by the taxpayer during the state fiscal year:                       (A)     for agricultural use, including for use in   composting or as animal feed; and                       (B)     to a location in this state that is not more   than 100 miles from the location where the spent grain byproduct was   used to produce liquor or a malt beverage.           (b)     An eligible taxpayer may not claim in a state fiscal   year a credit under this chapter that exceeds the lesser of:                 (1)  $30,000; or                 (2)     the total amount of taxes paid by the taxpayer   under this title during the state fiscal year.           Sec.   207.04.     CERTIFICATE OF ELIGIBILITY. (a)   Before a   taxpayer may apply for a credit under this chapter, the taxpayer   must request a certificate of eligibility from the commission.           (b)     On receipt of a request under Subsection (a), the   commission shall:                 (1)     determine whether the taxpayer is an eligible   taxpayer; and                   (2)     if the commission determines that the taxpayer is   an eligible taxpayer:                       (A)     determine the amount of the credit to which   the taxpayer would be entitled under Section 207.03(a),   notwithstanding the limitation prescribed by Subsection (b) of that   section; and                       (B)     issue the requested certificate of   eligibility to the taxpayer, which must state the amount of the   credit determined under Paragraph (A).           (c)     The commission may request from a taxpayer information   reasonably necessary to make a determination under Subsection (b).           (d)     The commission may adopt rules and procedures necessary   to implement and administer this section.           Sec.   207.05.     APPLICATION FOR CREDIT. (a)   A taxpayer must   apply for a credit under this chapter in the manner prescribed by   the comptroller and include with the application a certificate of   eligibility issued under Section 207.04.           (b)     The comptroller shall award a credit to a taxpayer who   submits an application that complies with the provisions of this   section in an amount equal to the amount stated on the certificate   of eligibility included with the application, subject to the   limitation prescribed by Section 207.03(b).           (c)     The comptroller may adopt rules and procedures   necessary to implement and administer this section.          SECTION 2.  A taxpayer may apply for a credit under Chapter   207, Alcoholic Beverage Code, as added by this Act, only for a   donation made on or after the effective date of this Act.          SECTION 3.  Chapter 207, Alcoholic Beverage Code, as added   by this Act, applies only to a tax originally due under Title 5,   Alcoholic Beverage Code, on or after the effective date of this Act.          SECTION 4.  This Act takes effect September 1, 2025.