New Jersey Brews to Barns Bill Advances Out of Committee

Last week, New Jersey lawmakers unanimously advanced Assembly Bill 5527, the New Jersey Brews to Barns Act, through the Assembly Agriculture and Natural Resources Committee on October 22. The bipartisan legislation, sponsored by Assemblywomen Heather Simmons and Andrea Katz, would provide tax incentives to breweries that donate spent grain to local farms.

If enacted, the bill would provide an alcohol beverage tax credit of 12 cents per dry-weight pound of spent grain donated to commercial farms for agricultural or horticultural use, up to $30,000 annually per brewery. Unused credits could be carried forward for up to five years.

The Brewers Association (BA) Brews to Barns initiative aims to strengthen partnerships between breweries and agricultural producers while providing financial relief to small and independent brewers. Spent grain, a byproduct of the brewing process, is a valuable resource for livestock feed, composting, and other agricultural uses.

The Brewers Guild of New Jersey and the BA supported the legislation. The bill would help expand existing relationships between New Jersey breweries and farmers while encouraging sustainable reuse of brewing byproducts. It would also level the playing field between large breweries, who have sufficient size to already monetize their spent grain, and small brewers, most of which must donate product for no compensation.

A5527 now awaits further consideration by the New Jersey General Assembly.