Pennsylvania lawmakers are weighing changes to a key tax incentive for craft brewers after hearing testimony from industry leaders and local business owners in the Lehigh Valley.

The state House Finance Committee convened a public hearing at Sherman Street Beer Company to examine legislation that would expand access to the state’s Malt Beverage Tax Credit program and give breweries more flexibility in how they use it. The bill, introduced by state Rep. Ana Tiburcio, D-Lehigh, aims to make the credit more usable for smaller, locally owned operations.

Tiburcio said the proposal is designed to strengthen small businesses that play a central role in community life.

“As a business owner myself, I am devoted to empowering small businesses in the Lehigh Valley, especially those that can revitalize our communities,” she said. “Breweries serve as important gathering spaces where people connect over locally made food and drink. This bill would help preserve those spaces and ensure consumers have more choices beyond national brands.”

The hearing featured testimony from brewers across the state as well as representatives of the Brewers of Pennsylvania trade association, who described challenges in accessing the full value of the existing credit.

Under current law, breweries can receive tax credits of up to $200,000 for capital investments such as facility upgrades or new equipment. While up to $5 million in credits are available annually, unused credits expire after three years and cannot be sold, transferred or refunded.

State Rep. Steve Samuelson, D-Northampton and chair of the House Finance Committee, said those limitations have prevented many smaller breweries from fully benefiting from the program.

“We found that too many breweries were unable to use their credits within the three-year window and had no way to recover the remaining value,” Samuelson said. “Extending the timeline to five years and allowing credits to be sold would give these businesses the flexibility they need to reinvest and grow.”

Supporters of the bill argue that such changes would provide a boost to Pennsylvania’s craft brewing sector, which has become a significant contributor to local economies and tourism.

The proposed reforms remain under consideration as lawmakers evaluate how best to support the state’s small and mid-sized brewers.