Texas has seen rapid growth in its winery, brewery, and distillery industries over the past decade. The state is now the fifth-largest wine-producing state in the country, and the Texas craft beer industry has expanded dramatically. Winery and brewery owners in Texas may be eligible for agricultural grants, tourism incentives, workforce training programs, and energy efficiency rebates that can meaningfully offset operating and expansion costs.
This guide covers the most relevant grant programs, incentives, and resources for Texas wineries, breweries, and related beverage businesses.
USDA Programs for Wineries and Breweries
Value-Added Producer Grants (VAPG)
The USDA's Value-Added Producer Grant program provides grants to agricultural producers who add value to their raw products. Texas wineries that grow their own grapes and vineyards that process fruit into wine may be eligible for VAPG grants to support planning activities (up to $75,000) or working capital expenses (up to $250,000). Breweries using locally grown hops or grains may also explore eligibility under this program.
Rural Business Development Grants (RBDG)
Wineries and breweries in rural areas of Texas may be eligible for USDA Rural Business Development Grants. These grants support small and emerging businesses with technical assistance, training, and business planning. Many of Texas's wine-producing regions — including the Texas Hill Country, High Plains, and Trans-Pecos areas — meet USDA rural designation requirements.
Rural Energy for America Program (REAP)
REAP provides grants and loan guarantees for energy efficiency improvements and renewable energy systems for rural businesses. Wineries and breweries in rural areas can use REAP grants to fund solar installations, energy-efficient refrigeration, HVAC upgrades, and other improvements. REAP grants can cover up to 40% of eligible project costs.
Texas Department of Agriculture Programs
GO TEXAN Program
The Texas Department of Agriculture's GO TEXAN program promotes Texas-made products and provides marketing support to Texas agricultural businesses, including wineries and breweries. Membership in GO TEXAN provides access to the GO TEXAN trademark, participation in trade shows and promotional events, and marketing assistance. While GO TEXAN does not provide direct grants, the marketing exposure and brand recognition can be valuable for growing customer awareness.
Texas Wine Industry Development Fund
The Texas Legislature has historically supported the wine industry through dedicated funding mechanisms. The Texas Wine Marketing Assistance Program and related initiatives have provided resources for wine industry promotion, research, and development. Availability and funding levels vary by legislative session, so winery owners should check with the Texas Department of Agriculture and Texas Wine and Grape Growers Association for current program status.
Workforce Training Programs
Skills Development Fund
The Texas Workforce Commission's Skills Development Fund provides grants for customized workforce training. Wineries and breweries can partner with local community colleges to access training funds for employees in areas like production management, quality control, food safety, hospitality operations, and equipment maintenance. Awards scale with the number of employees trained and the scope of the program.
Local and Regional Incentives
Property Tax Abatements
Texas cities and counties can offer property tax abatements for businesses making significant capital investments. Wineries and breweries building new facilities or expanding existing operations may negotiate abatements that reduce property tax liability for a defined period, typically five to ten years.
Chapter 380/381 Economic Development Agreements
Cities and counties in Texas can enter into economic development agreements that provide tax rebates, infrastructure support, or other incentives to businesses creating jobs and investment. Winery and brewery projects that bring tourism traffic and economic activity to a community may be particularly attractive to local economic development offices.
Tourism and Agritourism Support
Many Texas wineries and breweries operate as agritourism destinations. Counties and regional tourism organizations may provide marketing support, trail map inclusion, and event promotion for wineries and breweries that attract visitors. The Texas Hill Country wine trail and various craft beer trail programs provide collective marketing that benefits individual businesses.
SBA and Federal Lending Programs
- SBA 7(a) loans: Up to $5 million for working capital, equipment, and business acquisition. Applicable to winery and brewery operations that meet SBA size standards.
- SBA 504 loans: Below-market fixed-rate financing for commercial real estate and major equipment. Well-suited for winery or brewery facility construction and expansion.
- USDA B&I Loan Guarantees: The Business and Industry Loan Guarantee program can support larger projects in rural areas with loan guarantees up to $25 million.
Energy and Sustainability Incentives
Wineries and breweries can reduce operating costs through energy incentive programs:
- Utility rebates: Texas electric utilities offer commercial rebates for energy-efficient equipment including refrigeration, lighting, motors, and HVAC systems.
- Federal solar tax credits: The Investment Tax Credit (ITC) provides a tax credit for solar energy systems installed at commercial properties, which can offset electricity costs for production facilities.
- Water conservation programs: Some Texas water districts and utilities offer rebates or assistance for water conservation equipment, which is relevant for water-intensive brewing and winemaking operations.
Steps for Winery and Brewery Owners in Texas
- Explore USDA grants: If your business is in a rural area, check eligibility for VAPG, RBDG, and REAP programs through your local USDA Rural Development office.
- Join GO TEXAN: Membership provides marketing support and brand recognition for Texas-made products.
- Contact your local economic development office: Discuss property tax abatements and Chapter 380/381 agreements for facility development or expansion.
- Partner with a community college: Apply for Skills Development Fund grants for employee training programs.
- Evaluate energy incentives: Check utility rebate programs and REAP eligibility for energy efficiency improvements.
Find Programs That May Fit Your Business
Texas wineries and breweries can access a combination of agricultural programs, tourism incentives, workforce training grants, and energy rebates. The available programs depend on your location, business size, and development stage.
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