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How the Brews to Barns Act Delivers Tax Relief for Craft Breweries and Farmers

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How the Brews to Barns Act Delivers Tax Relief for Craft Breweries and Farmers

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Craft brewery spent grain and farm illustration representing the Brews to Barns Act
Washington

How the Brews to Barns Act Delivers Tax Relief for Craft Breweries and Farmers

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Key points

  • Representative Mike Kelly introduced H.R. 10877 to provide tax credits for craft breweries donating spent grain to farms.
  • The bill creates an eight-cent per pound excise tax credit capped at $35,000 annually per brewery.
  • The Brewers Association estimates the bipartisan measure could deliver $38 million in annual relief to craft brewers.

— Bipartisan lawmakers in Washington recently introduced legislation to support small businesses and agricultural producers across the nation. U.S. Representative Mike Kelly introduced the bill on October 22, 2026. This measure creates a craft brewery excise tax credit for businesses donating spent grain to local agriculture.

How does the HR 10877 Brews to Barns Act support local economies?

The legislation cuts tax burdens for small craft brewers while delivering nutrient-rich feed directly to family farms. By rewarding voluntary spent grain donations, the proposal strengthens economic ties between neighborhood breweries and agricultural producers. Consequently, local farmers reduce feed costs while craft businesses keep more earnings to reinvest locally.

How much can businesses save with the brewery spent grain tax credit?

Under the proposal, qualifying breweries earn an excise tax credit of eight cents per pound of donated spent grain. However, the bill limits this benefit to $35,000 per brewery each year. Furthermore, this non-refundable credit directly offsets federal excise tax liability. A small facility producing 2,500 barrels annually can completely eliminate its $8,750 federal excise tax bill.

Who introduced the Mike Kelly Brews to Barns Act in Congress?

Representative Kelly chairs the House Ways and Means Subcommittee on Tax and co-chairs the House Small Brewers Caucus. He introduced the bill alongside six bipartisan original co-sponsors. These lawmakers include Representatives Brad Schneider, Glenn “GT” Thompson, Marilyn Strickland, Jeff Hurd, John Larson, and Josh Riley. Currently, the U.S. House Committee on Ways and Means considers the measure.

Industry leaders strongly endorse this targeted tax relief measure. The Brewers Association estimates that the bill will return up to $38 million annually to independent craft brewers. For example, a larger craft brewery producing 5,000 barrels annually could save up to $17,500 in taxes each year.

This article was produced with the assistance of AI and reviewed by our editorial team.

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