Relating to an alcoholic beverage tax credit for certain liquor or malt beverage byproducts donated for agricultural use in this state.

SB 1554 creates a $0.08-per-pound tax credit for alcohol producers who donate spent grain (leftover grain from beer or liquor production) for agricultural use within Texas. It directly affects licensed distillers, brewers, and importers who pay alcohol taxes under Texas law. The credit applies only to donations made within 100 miles of the production site for purposes like animal feed or composting, with annual limits of $30,000 or total taxes paid that year. Producers must obtain a certificate of eligibility from the Texas Alcoholic Beverage Commission before claiming the credit. The bill aims to incentivize sustainable waste reuse while providing tax relief for eligible businesses.