Pennsylvania lawmakers this week advanced House Bill 2234, the Pennsylvania Brews to Barns Act, through its final hurdles in the lower chamber. The bipartisan effort received 196 Yes votes on third reading and final passage, with only six members voting no. If passed through the Senate and signed by the Governor, the bill would provide an excise tax credit for brewers who donate their spent grain to agriculture interests in the state at a rate of 16 cents per dry weight pound, up to $30,000 in credits per brewer annually. The bill has a $5M annual cap on total credits, but excess credits can be rolled over for up to five years. Additionally, the language was paired with a longtime priority for the Brewers of Pennsylvania, the brewers guild in the state, that would allow the existing malt beverage tax credit to be sold to other producers in the state, creating more relief for brewers during a difficult market.

The bill was referred to the Senate Finance Committee for consideration.

Brews to Barns, one of the core pieces of legislation worked on in 2026 by the Brewers Association (BA) at both the state and federal level, developed out of a similar bill introduced in Texas in 2025. 

“Pennsylvania has a long history of supporting its breweries,” said Jason Lavery, president of Lavery Brewing Company in Erie and chair of the BA Government Affairs Committee. “Brews to Barns will help small and independent brewers in the state navigate the current turbulent environment with tariffs, fuel prices and aluminum prices all going up.” 

The Brewers of Pennsylvania (BoP) added, “Craft breweries are pillars of their communities and take pride in supporting many endeavors that make their neighborhoods a better place to work, live and play.  Giving craft brewers a tax break for donating their spent grain to local farms encourages an activity that is beneficial to both the environment and local farmers who make good use of this highly nutritious byproduct of the brewing process.” 

Pennsylvania is the second largest beer state in the country with more than 2 million barrels of beer produced, ranks second in economic impact from craft, and ranks 14th in breweries per capita.