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A BILL TO BE ENTITLED
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AN ACT
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relating to an alcoholic beverage tax credit for certain liquor or |
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malt beverage byproducts donated for agricultural use in this |
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state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 5, Alcoholic Beverage Code, is amended by |
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adding Chapter 207 to read as follows: |
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CHAPTER 207. TAX CREDIT FOR DONATION OF CERTAIN BYPRODUCTS FOR |
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AGRICULTURAL USE |
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Sec. 207.01. DEFINITIONS. In this chapter: |
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(1) "Eligible taxpayer" means a person that: |
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(A) pays a tax under this title and holds: |
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(i) a permit under Chapter 14 or 37; or |
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(ii) a license under Chapter 62, 63, or 74; |
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or |
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(B) pays a tax under this title on the first sale |
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of liquor or a malt beverage that is imported into this state. |
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(2) "Spent grain byproduct" means the byproduct |
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material remaining from grain used to produce liquor or malt |
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beverages. |
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Sec. 207.02. ELIGIBILITY FOR CREDIT. An eligible taxpayer |
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is entitled to a credit in the amount and under the conditions |
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provided by this chapter against taxes paid under this title. |
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Sec. 207.03. AMOUNT OF CREDIT; LIMITATION. (a) Subject to |
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Subsection (b), the amount of an eligible taxpayer's credit for a |
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state fiscal year is equal to the product of: |
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(1) $0.08; and |
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(2) the number of pounds dry weight of spent grain |
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byproduct donated by the taxpayer during the state fiscal year: |
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(A) for agricultural use, including for use in |
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composting or as animal feed; and |
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(B) to a location in this state that is not more |
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than 100 miles from the location where the spent grain byproduct was |
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used to produce liquor or a malt beverage. |
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(b) An eligible taxpayer may not claim in a state fiscal |
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year a credit under this chapter that exceeds the lesser of: |
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(1) $30,000; or |
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(2) the total amount of taxes paid by the taxpayer |
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under this title during the state fiscal year. |
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Sec. 207.04. CERTIFICATE OF ELIGIBILITY. (a) Before a |
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taxpayer may apply for a credit under this chapter, the taxpayer |
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must request a certificate of eligibility from the commission. |
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(b) On receipt of a request under Subsection (a), the |
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commission shall: |
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(1) determine whether the taxpayer is an eligible |
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taxpayer; and |
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(2) if the commission determines that the taxpayer is |
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an eligible taxpayer: |
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(A) determine the amount of the credit to which |
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the taxpayer would be entitled under Section 207.03(a), |
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notwithstanding the limitation prescribed by Subsection (b) of that |
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section; and |
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(B) issue the requested certificate of |
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eligibility to the taxpayer, which must state the amount of the |
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credit determined under Paragraph (A). |
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(c) The commission may request from a taxpayer information |
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reasonably necessary to make a determination under Subsection (b). |
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(d) The commission may adopt rules and procedures necessary |
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to implement and administer this section. |
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Sec. 207.05. APPLICATION FOR CREDIT. (a) A taxpayer must |
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apply for a credit under this chapter in the manner prescribed by |
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the comptroller and include with the application a certificate of |
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eligibility issued under Section 207.04. |
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(b) The comptroller shall award a credit to a taxpayer who |
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submits an application that complies with the provisions of this |
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section in an amount equal to the amount stated on the certificate |
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of eligibility included with the application, subject to the |
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limitation prescribed by Section 207.03(b). |
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(c) The comptroller may adopt rules and procedures |
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necessary to implement and administer this section. |
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SECTION 2. A taxpayer may apply for a credit under Chapter |
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207, Alcoholic Beverage Code, as added by this Act, only for a |
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donation made on or after the effective date of this Act. |
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SECTION 3. Chapter 207, Alcoholic Beverage Code, as added |
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by this Act, applies only to a tax originally due under Title 5, |
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Alcoholic Beverage Code, on or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2025. |