Bizzarro’s tax cuts for Pa. brewers advances in House
Enhances Malt Beverage Tax Cut program, creates new tax cut for donated waste
Rep. Ryan Bizzarro June 10, 2026 | 11:06 AM
HARRISBURG, June 10 – Pennsylvania’s craft beer industry ranks near the top of the country in production and economic impact, but more than 60 breweries have closed their doors in the past two years. Legislation sponsored by Rep. Ryan Bizzarro (D-Erie) aimed at providing tax cuts to brewers across the commonwealth passed the House Finance Committee Wednesday, signaling a commitment to bolster Pennsylvania’s craft beer industry.
Bizzarro’s Brews to Barns Act would create a tax credit program to eligible brewers who donate their spent grain to Pennsylvania farmers to feed their livestock. Spent grain is the solid leftovers from brewing that are high in protein, fiber, and minerals, and is often used as animal feed or compost. But when donation isn’t available, the grain ends up in landfills.
“Pennsylvania has a rich heritage in both brewing and agriculture, and this is an initiative that greatly benefits both. Incentivizing brewers to donate their spent grain supports small businesses and farmers, and keeps waste out of our landfills,” Bizzarro said. “During this difficult economic time, it’s essential we do everything we can to support some of our largest industries and keep Pennsylvania competitive.”
The Brews to Barns Act was amended in the House Finance Committee to include language from legislation that would upgrade the state’s Malt Beverage Tax Credit program. The current program allows breweries that invest in their facility or equipment to claim a tax credit equal to their expenditures, up to $200,000. However, these tax credits can’t be sold and can only be carried forward for three years. Bizzarro’s legislation would enhance the program by permitting tax credit recipients to sell their credits to other Pennsylvania breweries and allowing it to be carried forward for up to five years.
“A new brewery could easily spend $200,000 or more just to become operational, but they would only be able to use a portion of the credit it would earn when it needs funds the most,” Bizzarro said. “This legislation will help brewers from the smallest microbrewery in Erie to the largest in Philadelphia by creating incentives to expand footprints and sales across Pennsylvania. I’m happy to have the support of both the Pennsylvania and National Brewers Associations.”
The House Majority Policy Committee, led by Bizzarro, held a roundtable discussion with brewers at the Craft Brewers Conference and World Beer Cup in April to gather feedback on how this bill would support the industry. Brewers told the committee between inflation, tariffs and cost increases, the past few years have been hard on the industry, but this legislation would go a long way toward helping breweries succeed.
The amended Brews to Barns Act passed out of the House Finance Committee with strong bipartisan support and now heads to the House floor for consideration.