House Bill Proposes Tax Credits for Donated Grain

The Brews to Barns Act incentivizes small brewers to donate spent grain for use by local farmers.

Updated on Oct. 23, 2026 in Beer

House Bill Proposes Tax Credits for Donated Grain

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Should the federal government offer tax credits to small businesses that donate to local farms?

Representatives Mike Kelly and Glenn Thompson introduced the Brews to Barns Act to provide federal excise tax credits for small brewers. The legislation encourages the donation of spent grain to local farms to support agricultural operations.

Why it matters

The act aims to strengthen local supply chains by fostering collaboration between small breweries and farmers. By incentivizing these donations, the bill seeks to lower input costs for agricultural producers while assisting small business owners.

H.R. 10877 establishes a new tax credit framework for small brewers donating spent grain. The bill currently maintains six original cosponsors in the U.S. House of Representatives.

The players

Mike Kelly

He is a U.S. Representative who sponsored the Brews to Barns Act, H.R. 10877.

Glenn Thompson

He is a U.S. Representative and an original cosponsor of the legislation.

Brad Schneider

He is a U.S. Representative serving as one of the original cosponsors of the bill.

Brewers Association

This organization represents small and independent American craft brewers and has endorsed the bill.

U.S. House Ways and Means Committee

This committee is the chief tax-writing body in the House and is responsible for reviewing the proposed legislation.

The details

The proposed legislation provides a credit against the excise tax on beer for small breweries that repurpose their brewing byproduct for agricultural use. The bill has been referred to the U.S. House Ways and Means Committee for further consideration.

Representative Mike Kelly sponsored the Brews to Barns Act on October 22, 2026.

Culture Shift

The Brews to Barns Act marks a departure from standard waste management policies by utilizing federal tax incentives to drive supply chain cooperation. This signals a broader trend of integrating small-scale industrial production with local agricultural sustainability.

Small breweries may see reduced overhead costs as they gain a new tax incentive for donating byproduct rather than disposing of it as waste. Local farmers may also benefit from a more consistent and cost-effective supply of grain for livestock feed or soil enrichment.

The takeaway

This legislation highlights the potential for cross-industry cooperation to reduce waste and support local businesses. Brewers and farmers should monitor the progress of the bill through the Ways and Means Committee for updates on implementation requirements.