Republicans and Democrats may not agree on much, but brewers everywhere are strongly encouraging the latest collaboration between the two major parties.
Massachusetts Democratic Senator John Kerry and Idaho Republican Senator Mike Crapo have co- sponsored the Brewer’s Employment and Excise Relief (BEER) Act. This act would lower excise taxes paid by small brewers, thus helping to encourage entrepreneurship and boost employment.
The way this proposed law works is simple. A small brewer has been defined as one that produces less than two million barrels of beer per year. This law would update this definition by increasing the limit to six million barrels and it would alter the excise structure for breweries below the six million barrel guideline. The legal definition of a small brewer has not been updated since 1976 and the bill’s sponsors feel it is time to change this legislation to make it current with the times.
This proposed bill would benefit small brewers everywhere. According to studies, any brewer that produces fewer than 60,000 barrels per year would enjoy a tax reduction from $7.00 per barrel down to $3.50 per barrel. This savings would be significant, and it would encourage hiring and economic growth in the industry.
Medium to large brewers would also benefit from this bill. Those that brew between 60,000 and 2 million barrels per year would witness a tax reduction of two dollars- a drop from eighteen dollars per barrel down to sixteen dollars per barrel.
Houston area craft breweries such as St. Arnold, Southern Star, No Label, and other soon- to- be startup breweries are watching anxiously as this proposed law makes its way through the legislative process.
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