The Brews to Barns Act, introduced Oct. 22, 2026, would create a credit against the federal excise tax on beer for brewers that donate spent grain for local agricultural use. Reps. Mike Kelly (R-PA), chairman of the Ways and Means Subcommittee on Tax, and Brad Schneider (D-IL), a member of the Ways and Means Committee, announced the bipartisan bill in a press release.
Co-sponsors include House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA), House Small Brewers Caucus Co-Chair Marilyn Strickland (D-WA), and Reps. Jeff Hurd (R-CO), John Larson (D-CT) and Josh Riley (D-NY).
A reality check from the Bureau: this is an introduced bill. It is not law, and it would still have to pass both chambers and be signed.
What the Brews to Barns Act would do
Spent grain is the malt left behind after brewing, and many breweries already hand it to farmers. The release frames the bill as a way to reward that habit. The press release itself names no dollar figure, but the bill text linked from it does. As drafted, the credit would be:
- 8 cents per dry-weight pound of spent grain given to an unrelated person for local agricultural use
- capped at $35,000 per calendar year, and never more than the brewer’s beer excise tax for the period
- limited to use within 100 miles of where the beer was brewed
- open to composting, soil amendment, mushroom cultivation and animal feed
- effective for beer removed after Dec. 31, 2026
Under the Brews to Barns Act, dry weight is measured on all grain ingredients used in the brew, and brewers would need to keep receipts plus end-use and location certifications from recipients. One wrinkle in the Brews to Barns Act: the release describes a credit for small brewers, while the bill text posted with it says “brewers” and does not spell out a size limit. The draft is also unnumbered, so details could change as it moves.
What lawmakers and brewers said
“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,” Kelly said. Schneider said the effort aims “to help lower costs and prevent waste.” Strickland said the credit would “keep spent grain out of our landfills.”
Jason Lavery, co-founder of Lavery Brewing Company in Erie, Pa., said donating grain “takes time and resources,” and that the act “would provide meaningful tax relief that we could reinvest directly into our brewery.”
Brewers Association President and CEO Bart Watson said: “By donating spent grain for agricultural use, brewers help turn a byproduct of the brewing process into a valuable resource for farmers. The Brews to Barns Act recognizes the value of these longstanding partnerships and helps ensure they can continue to thrive.”
Spent grain has been around the block
Breweries have been finding second lives for spent grain for years. Back in 2019, BeerAlien shared Deschutes Brewery’s recipe for spent grain dog treats. And small brewers asking Congress for help is not new either: in 2020 the Brewers Association called for a day of action as the pandemic hit.
The Bureau will watch whether the Brews to Barns Act gets a bill number, a committee hearing and a vote. Until then, the cows will keep eating for free.
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