Bill Text: NJ A5527 | 2026-2027 | Regular Session | Introduced
Bill Title: Provides alcoholic beverage tax credits to certain breweries for donations of spent grain byproduct to commercial farm for agricultural or horticultural use.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-09-17 - Introduced, Referred to Assembly Agriculture and Natural Resources Committee [A5527 Detail]
Download: New_Jersey-2026-A5527-Introduced.html
Sponsored by:
Assemblywoman HEATHER SIMMONS
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Provides alcoholic beverage tax credits to certain breweries for donations of spent grain byproduct to commercial farm for agricultural or horticultural use.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning alcoholic beverage tax credits to breweries for certain donations and supplementing chapter 43 of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Brewery" means the holder of a limited brewery license, restricted brewery license, or farm brewery license pursuant to R.S.33:1-10.
"Commercial farm" means the same as that term is defined pursuant to section 3 of P.L.1983, c.31 (C.4:1C-3).
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Spent grain byproduct" means the material remaining from grain used in the production of alcoholic beverages.
"Tax year" means the aggregate of the reporting periods between January 1 and December 31 of each calendar year, for which the tax imposed pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq. is due.
b. A taxpayer that is a brewery shall be allowed a credit against the tax imposed pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq., in an amount equal to $0.12 multiplied by the number of pounds, in dry weight, of spent grain byproduct that is donated, free of charge, by the taxpayer to a commercial farm for agricultural or horticultural use, provided that the total amount of tax credits allowed for a taxpayer pursuant to this section for a tax year shall not exceed $30,000, and the application of the tax credit shall not reduce the tax liability of the taxpayer to an amount less than zero.
c. The amount of credit otherwise allowable pursuant to this section that cannot be applied for the tax year against the tax liability otherwise due for that tax year may be carried over, if necessary, for the five tax years next following the tax year for which the credit has been allowed.
d. A taxpayer may claim a credit pursuant to this section at the time of remitting the tax imposed pursuant to the "Alcoholic beverage tax law," R.S.54:41-1 et seq., provided that the taxpayer shall retain a written record of the following information for such time period as the director may require, which information shall be produced by the taxpayer upon the request of the director:
(1) documentation of the quantity of spent grain byproduct donated by the taxpayer during each reporting period for which a credit is claimed pursuant to this section, including the type of spent grain byproduct and the dry weight in pounds;
(2) documentation of the donation of the spent grain byproduct, including the name of the recipient commercial farm and the intended use of the spent grain byproduct; and
(3) any other information the director may require for the purpose of auditing the credit claimed pursuant to this section.
2. Notwithstanding any provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), the Director of the Division of Taxation in the Department of the Treasury may adopt immediately upon filing with the Office of Administrative Law, rules and regulations as the director determines to be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), which shall be effective for a period not to exceed 360 calendar days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director pursuant to the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
3. This act shall take effect immediately and apply to donations of spent grain byproduct made on or after the January 1 next following the date of enactment.
STATEMENT
This bill authorizes a brewery to claim a credit against the alcoholic beverage tax based on the dry weigh of spent grain byproduct that is donated to commercial farms in this State for agricultural or horticultural use. The bill defines a "brewery" as the holder of a limited brewery license, restricted brewery license, or farm brewery license under State law.
Under the bill, a brewery may claim the credit in an amount equal to $0.12 multiplied by the number of pounds in dry weight of donated spent grain byproduct. A brewery may claim up to $30,000 in a tax year, except that the credit may not reduce the tax liability of the brewery to an amount less than zero. Any unused credit may by carried forward for the five tax years next following the tax year for which the credit was allowed.
Under the bill, a brewery may claim the credit at the time of remitting the tax imposed pursuant to the "Alcoholic beverage tax law." The brewery is required to retain a written record of the following information: (1) documentation of the quantity of spent grain byproduct donated by the taxpayer during each reporting period for which a credit is claimed pursuant to this section, including the type of spent grain byproduct and the dry weight in pounds; (2) documentation of the donation of the spent grain byproduct, including the name of the recipient commercial farm and the intended use of the spent grain byproduct; and (3) any other information the director may require for the purpose of auditing the credit claimed under the bill. Under the bill, the brewery is required to retain this information for such time as the director may require and to produce this information upon the director's request.
