PHILADELPHIA, PA — Pennsylvania lawmakers are weighing a new tax credit aimed at helping struggling breweries and farmers as dozens of breweries close and economic pressures mount across the industry.
What This Means for You
- A proposed tax credit would reward breweries for donating grain waste to farmers
- Lawmakers say the measure could support both local agriculture and small businesses
- The effort comes after more than 65 Pennsylvania breweries closed in two years
The House Majority Policy Committee met Tuesday with brewers from across the state during a roundtable held alongside the World Beer Cup in Philadelphia, as officials gathered feedback on industry challenges and potential policy responses.
Proposed Tax Credit Targets Brewery Waste
The legislation, introduced by Policy Committee Chairman Rep. Ryan Bizzarro, would provide a tax credit to breweries that donate spent grain — a byproduct of beer production — to farmers for use as livestock feed.
Spent grain refers to the leftover barley and other ingredients after the brewing process, which can be repurposed as animal feed rather than discarded.
“The Brews to Barns Act turns waste into opportunity,” Bizzarro said. “By connecting brewers with local farms, we reduce waste, strengthen our agricultural economy, and help local businesses lift each other up.”
Lawmakers said the proposal is designed to address financial strain on breweries while also supporting farmers dealing with rising costs and market volatility.
Industry Faces Rising Costs and Closures
Brewers who participated in the roundtable described a sector under pressure from inflation, tariffs, and increased production and shipping costs.
More than 65 breweries in Pennsylvania have closed over the past two years, according to figures shared during the event, reducing jobs and impacting local economies.
“Pennsylvania is a behemoth of a brewing state,” said Jason Lavery of Lavery Brewing Co. in Erie County. “The last couple years have been really hard for us, with tariffs, aluminum cost increases, shipping cost increases, and now the war.”
Lavery said smaller breweries are working to keep prices affordable while absorbing higher costs, adding that targeted legislation could help stabilize the industry.
Roundtable Brings Statewide Voices
Participants included brewers and industry representatives from across Pennsylvania, including Zeroday Brewing Co. in Dauphin County, Juniata Brewing Co. in Huntingdon County, Yards Brewing Co. in Philadelphia, and Boston Brewing Co., along with officials from the Pennsylvania Department of Agriculture.
Attendees discussed both financial challenges and regulatory barriers, including interest in modernizing state rules to allow breweries to diversify into other beverages.
Philadelphia’s Brewing Legacy
The discussion took place in Philadelphia, a city with deep historical ties to the brewing industry. Once known as the “Beer Capital of America,” the city was home to hundreds of breweries and played a role in the development of lager beer in the United States.
Next Steps
The proposed tax credit remains under consideration and would need approval from the full General Assembly before becoming law. Lawmakers said the roundtable discussion will help shape future legislation aimed at supporting Pennsylvania’s brewing and agricultural sectors.
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