Please ensure Javascript is enabled for purposes of website accessibility House passes Bizzarro bill to cut taxes for Pennsylvania brewers

House passes Bizzarro bill to cut taxes for Pennsylvania brewers

Creates tax cut for donated grain, upgrades Malt Beverage Tax Credit

HARRISBURG, June 23 – Legislation to provide tax cuts to brewers and bolster Pennsylvania’s craft beer industry has passed the Pennsylvania House with overwhelming bipartisan support, state Rep. Ryan Bizzarro, who sponsored the bill, announced Tuesday.

Bizzarro’s Brews to Barns Act would create a tax credit program for 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’s craft beer industry is a strong economic driver, creating jobs and supporting local agriculture while attracting new visitors from all over. This measure will help keep more money in the pockets of our brewers while also supporting our farmers and vital agriculture industry,” Bizzarro said. “It’s a bill that benefits everyone, from brewers and beer drinkers to farmers and animals.”

The Brews to Barns Act would also upgrade the state’s Malt Beverage Tax Credit program. Right now, breweries that invest in their facility or equipment can 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.

“From Erie to Philadelphia and everywhere in between, we should be doing anything we can to support breweries of all sizes as they face a range of uncertain economic factors,” Bizzarro said. “Enhancing the state’s Malt Beverage Tax Credit will help give new and established breweries the resources they need to invest in and expand their operations, so they can continue serving as a strong economic resource for our state.”

In April, Bizzarro led the House Majority Policy Committee in 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. Jason Lavery, owner of Lavery Brewing Co. in Erie, said between inflation, tariffs and continued cost increases, this legislation would go a long way toward helping breweries succeed.

“Everything costs more these days—equipment, labor, utilities, you name it. Every dollar we can put back into our business helps us maintain our equipment and operations while creating new opportunities for our staff,” Lavery said. “Strengthening this tax credit would give breweries the breathing room we need to remain operational and competitive in these challenging times. I’m grateful for Rep. Bizzarro’s leadership in taking up this issue and looking out for the craft beer industry.”

The Brews to Barns Act passed the House with a vote of 196-6 and now heads to the Pennsylvania Senate for consideration.