Tax break proposed for beer producers using Nebraska crops

LINCOLN, Neb. (AP) - Beer makers could receive a tax break under a bill that would boost the market for Nebraska-grown barley and hops.

Sen. Ken Schilz of Ogallala introduced a bill Tuesday that would offer a non-refundable tax credit to breweries using Nebraska-grown crops.

The measure would apply to manufacturers if at least 10 percent of the crops used in brewing were grown in Nebraska. Manufacturers could receive up to a 35 percent tax credit if 70 percent or more of their grains were grown in the state.

The bill says beer-related crops include barley, hops or any other grain customarily used in the manufacture of beer.

The state has already lowered taxes for Nebraska wineries that source 75 percent of their products from within the state.

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The bill LB204