Brews to Barns Is in the House

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