Brews to Barns Act Is in the House

Brews to Barns Act could deliver major tax relief for small craft breweries

The Brews to Barns Act has officially been introduced in the U.S. House of Representatives, bringing a bipartisan proposal that could provide meaningful federal excise tax relief for America’s small and independent craft breweries while strengthening their existing relationships with local farmers. Supported by the Brewers Association, the legislation would establish a tax credit for breweries that donate spent grain for agricultural use, helping offset expenses that many smaller brewing operations already absorb when handling, storing and transporting leftover brewing grains.

Here’s the real opportunity. American breweries generate approximately 4.7 million metric tons of spent grain annually, with roughly 90% already reused, primarily for livestock feed or compost. Larger breweries often have enough spent grain to sell commercially, while smaller craft breweries frequently give theirs away to nearby farms, paying transportation and handling costs without receiving comparable financial benefits. The Brews to Barns Act would help address that imbalance by providing eligible brewers with a federal excise tax credit of eight cents per dry-weight pound of donated spent grain, capped at $35,000 annually.

The Brewers Association estimates that the Brews to Barns Act could reduce federal excise tax burdens on small breweries by approximately $38 million each year, money that could help independent brewers manage rising operating expenses, replace equipment, support employees and reinvest in their businesses. A practical incentive for something breweries already do. The proposal has been a major Brewers Association advocacy priority throughout 2026, including during its February Hill Climb in Washington, D.C., where nearly 100 brewery representatives, guild leaders and industry partners brought the issue directly to lawmakers. The bipartisan legislation is backed by Representatives Mike Kelly, Brad Schneider, Jeff Hurd, John Larson, Josh Riley, Marilyn Strickland and Glenn Thompson.

The following official Brewers Association announcement outlines the proposed Brews to Barns Act, its potential $38 million annual tax benefit for small breweries, the proposed spent grain donation tax credit and the bipartisan congressional effort to strengthen relationships between America’s independent craft brewers and agricultural producers.

The Brewers Association applauds today’s introduction of the Brews to Barns Act in the U.S. House of Representatives by Reps. Mike Kelly (R-PA), Brad Schneider (D-IL), Jeff Hurd (R-CO), John Larson (D-CT), Josh Riley (D-NY), Marilyn Strickland (D-WA), and Glenn “GT” Thompson (R-PA). 

The legislation would create a federal excise tax credit for breweries that donate spent grain, the primary byproduct of the brewing process, for agricultural use. The proposal is designed to strengthen longstanding partnerships between breweries and farmers while helping reduce costs for small businesses and keeping valuable organic material out of landfills. 

American breweries generate approximately 4.7 million metric tons of spent grain each year, and roughly 90% is already reused, primarily as livestock feed or compost. For large brewers, the scale and volume of their operations create a market for selling their spent grain, while small brewers often lack that same commercial opportunity and instead provide it to local farmers at little or no cost while absorbing the associated handling and transportation expenses. Brews to Barns would help level that competitive playing field. 

“Small and independent breweries face rising operating costs and increasingly difficult decisions about where to invest their limited resources,” said Bart Watson, president and CEO of the Brewers Association. “The Brews to Barns Act offers practical tax relief that would allow brewers to put more money back into their businesses, whether that’s supporting their employees, replacing aging equipment, or investing in future growth. For small breweries operating on tight margins, even modest savings can make a meaningful difference.” 

Under the legislation, eligible brewers would receive an excise tax credit of $0.08 per dry weight pound, up to $35,000 per year. The federal initiative has been a leading Brewers Association advocacy priority in 2026 and was the primary issue raised by nearly 100 brewery representatives, guild leaders, and industry partners during the association’s February Hill Climb in Washington, D.C. The Brewers Association estimates the proposal could reduce federal excise tax burdens on small brewers by approximately $38 million annually. 

Rep. Mike Kelly, Co-Chair of the House Small Brewers Caucus: “At their cores, local breweries and farms are small businesses who play integral roles in our communities. The Brews to Barns Act incentivizes a collaborative effort between small breweries and local farmers to strengthen local supply chains. It’s a win-win for everyone.” 

Spent grain is the nutrient-rich barley and other grains remaining after the brewing process. For every average 31-gallon barrel of beer produced, a brewery generates more than 65 pounds of spent grain. Farmers can use the material as livestock feed or as a soil amendment, creating an established connection between local breweries and agricultural producers. 

Rep. Brad Schneider: “Everyone in America—from working families to Main Street businesses—is feeling the bite of rising costs. Among those hit hardest are craft beer brewers and local farmers, which is why I am glad to join my colleagues in this bipartisan effort to help lower costs and prevent waste.” 

The Brewers Association will work with members of Congress to build bipartisan support for the Brews to Barns Act and advance the legislation. 

Learn more: What Brews to Barns Could Mean for Your Brewery’s Tax Bill

Related news from mybeerbuzz.com:
We’ve been following the Brewers Association and the economic challenges facing America’s small and independent craft breweries here at MyBeerBuzz, including our coverage of the Brewers Association annual production report and Top 50 craft brewing companies, which examined declining craft beer production, brewery closures, employment and operating costs. Readers can also revisit the Brewers Association midyear craft beer industry survey for additional insight into the financial pressures facing independent breweries, along with the 2023 annual craft brewing industry production report and our coverage of the 2026 Brewers Association Beer Style Guidelines. These reports provide additional context for the proposed Brews to Barns Act and the Brewers Association’s continued efforts to support American craft brewers.

About the Brewers Association

The Brewers Association is the national trade organization representing small and independent American craft brewers. Based in Boulder, Colorado, the nonprofit organization works to promote and protect American craft beer, independent breweries and the broader community of brewing professionals whose businesses contribute to local economies throughout the United States.

Through legislative advocacy, industry research, educational resources, professional development and national events, the Brewers Association supports the continued success of independent craft breweries operating in an increasingly competitive beer market.

Its membership includes breweries of different sizes and business models, ranging from neighborhood brewpubs and small taproom operations to established regional craft breweries.

Brewers Association advocacy and craft brewery legislation

One of the Brewers Association’s primary responsibilities involves representing independent breweries before federal and state policymakers.

The organization works with lawmakers, state brewers guilds and industry partners to address regulatory requirements, federal excise taxes, brewing legislation and other issues affecting the financial health of American craft breweries.

The proposed Brews to Barns Act represents an important example of that work.

Introduced in the U.S. House of Representatives in October 2026, the bipartisan legislation would establish a federal excise tax credit for eligible breweries that donate spent grain for agricultural use.

Under the proposal, qualifying breweries could receive a credit of eight cents per dry-weight pound of donated spent grain, up to $35,000 annually.

The Brewers Association estimates that the legislation could reduce federal excise tax burdens on small breweries by approximately $38 million each year.

For independent breweries facing rising expenses, the proposed tax credit would help offset costs associated with handling and transporting spent grain to local agricultural producers.

The legislation would also encourage existing relationships between craft breweries and farmers, allowing nutrient-rich brewing byproducts to remain useful rather than entering landfills.

Supporting independent craft breweries

Beyond legislative advocacy, the Brewers Association provides extensive resources designed to help brewery owners, production teams and hospitality professionals operate successful businesses.

Its work includes economic research, production reporting, technical brewing guidance, safety information, educational programs and analysis of emerging industry trends.

The organization publishes annual craft brewing industry production statistics, including information about brewery openings, closures, production volume, employment and retail sales.

These reports provide brewery owners and industry professionals with measurable information about the changing American beer market.

The Brewers Association also maintains its widely referenced Beer Style Guidelines, which establish detailed descriptions of beer styles used by brewers, competition organizers and beer judges.

Updated regularly, these guidelines reflect traditional brewing practices alongside developments in modern American craft beer.

Brewers Association events and education

The Brewers Association organizes several influential industry events, including the Craft Brewers Conference, BrewExpo America, the Great American Beer Festival and the World Beer Cup.

These programs bring together brewers, suppliers, distributors, industry professionals and beer enthusiasts while providing opportunities for technical education, professional networking and recognition of brewing excellence.

The Craft Brewers Conference serves as an important educational gathering for brewery owners and employees, addressing subjects ranging from brewing science and production efficiency to business management and regulatory compliance.

The Great American Beer Festival and World Beer Cup recognize outstanding beers through professionally organized judging programs.

These competitions also help independent breweries introduce their products to broader audiences.

The Brewers Association and the future of craft beer

As independent breweries navigate rising operating expenses, changing consumer preferences and increased competition, the Brewers Association continues advocating for policies intended to support sustainable brewery operations.

Its 2026 Brews to Barns initiative demonstrates how relatively straightforward changes to federal tax policy could provide meaningful financial assistance while supporting agricultural partnerships and responsible management of brewing byproducts.

By combining legislative advocacy, professional education, technical resources and industry research, the Brewers Association remains an important voice for America’s small and independent craft brewing community.

For more information about the Brewers Association, its legislative priorities, brewery resources, industry statistics and the proposed Brews to Barns Act, visit www.brewersassociation.org.

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