HB 2234 Pennsylvania House · 2025-2026 Regular Session

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in malt beverage tax, further providing for limited tax credits and providing for spent grain donation tax credit.

HB 2234 creates a tax credit for Pennsylvania breweries that donate spent grain byproduct (leftover grain from brewing) to local farms. Breweries can claim a credit of $0.16 per pound of dry weight donated, up to $30,000 annually or their total tax liability, if the grain is delivered to farms within 100 miles. The credit applies to donations made to "eligible agricultural operations" engaged in normal farming activities under Pennsylvania law. Applications must be submitted by February 1 each year for the prior year's donations, with the Department of Revenue reviewing eligibility and coordinating with the Liquor Control Board. This directly benefits breweries and farms participating in the program by reducing brewery tax bills while repurposing brewing waste.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Jun 2026

House Passage

Jun 2026

Senate Passage

Governor

Introduced Feb 20, 2026 Last action Jun 25, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Printer's No. PN2927 → Printer's No. PN3583 · 6 edits

MODERATE

The bill was updated from a preliminary version to a final amended version, adding new sponsors and reporting requirements while significantly expanding the tax credit program. The changes introduce a new 'Limited Tax Credits' section for malt beverage manufacturers and increase the spent grain donation credit cap from $30,000 to $5,000,000 annually. The effective date was also adjusted, and the reporting deadline for the spent grain credit was moved from July 1 to October 1.

Scope change

The bill's scope expanded to include a new limited tax credit for malt beverage manufacturers and increased the total annual funding cap for the spent grain donation credit from $30,000 to $5,000,000.

ELIGIBILITY

Added new sponsors (Parker, Malagari, Boyd, and Sappey) to the bill's list of authors.

REQUIREMENT

Added a requirement for the Department of Revenue to submit an annual report on the tax credit to Appropriations and Finance committees by October 1.

Added new requirements for taxpayers to sell or assign tax credits, including verification of tax liability and a 90-day settlement window for the Department.

DEFINITION

Added a new Section 2010 establishing a limited tax credit for malt beverage manufacturers with specific definitions for 'Amounts Paid' and 'Qualifying Capital Expenditures'.

FISCAL

Increased the total annual cap for the spent grain donation tax credit from $30,000 to $5,000,000.

TIMELINE

Extended the carryover period for unused tax credits from seven years to five years and moved the application review deadline from July 1 to October 1.

Floor votes · House Jun 23, 2026

How they voted

195–6

Passed

Total votes 201

Jun 23, 2026

D Democratic102

102 Yea

100% Yea

R Republican99

93 Yea 6 Nay

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 25, 2026

Committee

Referred to Finance

upper

Jun 23, 2026

Lower · Passed

Third consideration and final passage

lower

Jun 23, 2026

Lower · Passed

Re-reported as committed

lower

Jun 22, 2026

Committee

Re-committed to Appropriations

lower

Jun 17, 2026

Lower · Passed

Re-reported as committed

lower

Jun 10, 2026

Committee

Re-committed to Rules

lower

Jun 10, 2026

Lower · Passed

Reported as amended

lower

Feb 20, 2026

Committee

Referred to Finance

lower

1 primary · 22 co-sponsors