Tennessee House Bill HB1901

Tennessee 2025-2026 Regular Session

• Introduced: 1/22/26
• Refer: 2/4/26
• Refer: 3/23/26

Caption

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.

Impact

The implications of HB 1901 extend to local farmers who could benefit from receiving these byproducts, which may improve their composting processes or animal feed quality. By allowing this exchange, the state anticipates a reduction in waste from breweries and a potential increase in local agricultural productivity, supporting both industries. The legislation also aims to address challenges related to waste disposal for breweries by incentivizing more environmentally friendly practices.

Summary

House Bill 1901 aims to amend the Tennessee Code Annotated to establish a tax credit for eligible taxpayers who donate alcoholic beverage byproducts, specifically spent grain, for agricultural use. Eligible taxpayers include holders of manufacturer licenses for high alcohol content beer, and the bill proposes a credit based on the weight of the byproducts donated to a recipient within 100 miles of their manufacturing location. The intent behind this bill is to promote agricultural sustainability by encouraging beverage manufacturers to contribute to farming practices instead of disposing of their byproducts.

Sentiment

Overall, the sentiment around HB 1901 appears to be positive, with supporters highlighting its potential to foster collaboration between the beverage and agricultural sectors. Advocates argue that the bill is an innovative solution to waste management in the brewing industry while supporting local agriculture. However, there may be some concerns regarding the implementation and administration of the tax credit program, particularly how it would be monitored and enforced.

Contention

Potential points of contention surrounding HB 1901 may include discussions regarding the financial implications for the state in terms of tax revenue loss due to these new credits. Furthermore, there might be debates on whether the credit structure effectively incentivizes significant contributions from breweries or if it merely benefits established businesses without sufficiently boosting agricultural outcomes. Such discussions might focus on the balance between supporting local businesses and ensuring that tax incentives lead to tangible environmental benefits.