Craft Beer Tax Cuts Reintroduced In 115th Congress

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Leaders support efforts to help small business brewers.

Seeking to support small brewers around the country, the Craft Beverage Modernization and Tax Reform Act (S.236/H.R.747) was reintroduced in both chambers of Congress. Introduced by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO), and Representatives Erik Paulsen (R-MN) and Ron Kind (D-WI) in the House, with 12 original sponsors in the Senate and 13 in the House, the comprehensive bill seeks to recalibrate the current federal excise tax structure for the nation’s brewers, fostering economic development and job growth in the brewing industry.

“Small and independent craft brewers are among the leading manufacturers in our country, and over the last few decades have created thousands of well-paying jobs in communities across the United States. The Craft Beverage Modernization and Tax Reform Act is synonymous with economic development and job creation,” said Bob Pease, president and CEO, Brewers Association. “With the beginning of the new Session of Congress, we are working hard to build support for this bipartisan legislation, which, if enacted, will help breweries all over the country generate more jobs and pour more money back into the economy. Thanks to Senator Wyden and Representative Paulsen for leading this effort. We look forward to working with Members of Congress on both sides of the aisle and the new Administration to make this great American industry even greater.”

In addition to recalibrating excise taxes, the Craft Modernization and Tax Reform Act would ease a number of burdens for brewers, including simplifying label approvals and repealing unnecessary inventory restrictions. Specific tax provisions of the bill include:

  • Reducing the federal excise tax to $3.50 per barrel on the first 60,000 barrels for domestic brewers producing fewer than 2 million barrels annually.
  • Reducing the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers.
  • Keeping the excise tax at the current $18 per barrel rate for barrelage over 6 million.

The Brewers Association has played an instrumental role in championing the bill through Congress and collaborating with colleagues in the beer, wine and spirits sectors to generate wide support for the legislation.  Last Congress, the bill was sponsored by the majority of the Senate and House, and endorsed by the National Barley Growers Association, Hop Growers of America, National Association of Manufacturers, Canning Manufacturers Institute, Glass Packaging Institute, National Corn Growers Association, the Wine Grape Growers of America and others.  A complete list of Craft Beverage Modernization and Tax Reform Act co-sponsors can be found here.

About the Brewers Association

The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts. The Brewers Association (BA) represents more than 70 percent of the brewing industry, and its members make more than 99 percent of the beer brewed in the U.S. The BA organizes events including the World Beer Cup℠, Great American Beer Festival®, Craft Brewers Conference & BrewExpo America®, SAVOR℠: An American Craft Beer & Food Experience, Homebrew Con, National Homebrew Competition and American Craft Beer Week®. The BA publishes The New Brewer magazine and its Brewers Publications division is the largest publisher of contemporary and relevant brewing literature for today’s craft brewers and homebrewers.

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