Tennessee Senate Bill SB2339

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26

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 bill intends to create a fiscal incentive for alcohol manufacturers to engage in environmentally friendly practices by reducing waste while also supporting local agriculture. Eligible taxpayers can receive a tax credit of eight cents for every pound of spent grain donated, up to a limit of $30,000 or the amount of excise taxes paid within the fiscal year. This measure is expected to stimulate donations from breweries and enhance the agricultural sector's resources within Tennessee, potentially benefiting farmers and local food systems.

Summary

SB2339 is proposed legislation aimed at amending certain sections of the Tennessee Code Annotated, specifically Title 43, Title 57, and Title 67, to introduce tax credits for alcoholic beverage manufacturers who donate byproducts for agricultural use. The bill outlines the definitions of relevant terms, such as 'eligible taxpayer' and 'spent grain byproduct', establishing a framework for how these tax credits can be applied. This initiative encourages breweries to contribute to local agriculture, specifically through the donation of spent grains, which can be used for composting or as animal feed.

Conclusion

In summary, SB2339 facilitates tax credits for breweries that donate byproducts to agriculture, fostering a partnership between the alcoholic beverage industry and local farming. By promoting such sustainable practices, the bill not only addresses waste management but also aims to bolster Tennessee's agricultural economy, though it may invite scrutiny concerning implementation and efficacy.

Contention

While the bill promotes a beneficial outcome for both the breweries and the agricultural sector, there may be concerns regarding the feasibility and administrative aspects of implementing the tax credit system. Questions may arise regarding the compliance costs for breweries updating their operational practices to ensure they qualify for the tax incentives. Some stakeholders may express apprehensions about the adequacy of the credits and whether they sufficiently offset the cost of compliance. Moreover, there could be discussions surrounding the bill's impact on the competitive landscape for local agricultural businesses.