Since 2018, small and independent breweries have been the recipients of a downward revision in federal excise taxes. Under the 2018 rule, brewers pay an excise tax of $3.50/barrel (down from $7/barrel) on the first 60,000 barrels for domestic brewers producing less than two million barrels annually; $16/barrel (down from $18/barrel) on the first six million barrels for all other brewers and all beer importers. For all barrels over 6 million, the taxes stayed at the current rate of $18/barrel.
Breweries have been using the tax savings for upgraded equipment, new hires, better employee benefits, and economic investment in the community.
However, the lower federal excise-tax rate is set to expire on December 31, 2019, if the revised rates are not made permanent or are at least extended.
Senators and representatives across the country need to hear from brewers, employees, customers, and suppliers regarding how the Craft Beverage Modernization and Tax Reform Act of 2019 (S.362/H.R. 1175) will affect the industry as a whole and your community specifically.
Oregon senator Ron Wyden and Missouri senator Roy Blunt (R-MO), plus Wisconsin representative Ron Kind and Pennsylvania's Rep. Mike Kelly (R-PA), introduced the Craft Beverage Modernization and Tax Reform Act of 2019 (S.362/H.R. 1175) to make the current federal excise-tax rates for breweries permanent.
What can you do? A quick email to your reps and senators will go a long way toward letting the U.S. Congress know that local breweries are integral to their communities.
Thanks a lot -- let's make sure we support our local breweries!