SPIRIT Act Supporting Producers through Incentives from Rural...
To amend the Internal Revenue Code of 1986 to establish the small distiller domestic sourcing credit.
This bill, HB9407, aims to change the tax laws to create a new tax credit for small distillers who use locally-sourced ingredients in their products. If passed, this bill would help small distillers by reducing their tax burden, encouraging them to use local farms and ingredients, and potentially boosting local economies. The bill is currently in its early stages, having just been introduced and referred to the House Committee on Ways and Means.
The bill would mainly affect small distillers who use locally-sourced ingredients in their production. By providing a tax credit, it would lower their tax costs, making it more financially viable for them to continue or expand their use of local ingredients. This could also help local farmers by increasing the demand for their products.
HB9407 was introduced on June 23, 2026, and has been referred to the House Committee on Ways and Means for further review. The bill is currently being considered, and future actions will depend on the committee's review and recommendations. The bill's sponsors include Jill Tokuda, a Democrat, and Jeff Hurd, a Republican, showing bipartisan support for the proposed changes.
