Senators John Kerry (D-Massachusetts)& Mike Crapo (R- Idaho) have officially introduced the BEER Act, that would lower the beer excise tax on small brewers in America. BEER stands for Brewer’s Employment & Excise Relief.
What You Need To Know:
The BEER Act aims to create close to 1,600 jobs in the small brewing industry. There are close to 100,000 jobs already in craft brewing. The senators have met with breweries in their respective states discussing finances, supply & demand, taxation etc. Introducing this beer will keep the industry thriving in rough economic times. Small brewers incur higher costs for production, raw materials, & packaging than the large breweries, and multi-national competitors. The BEER Act also stimulates barley, wheat, & hop growers.
Current Tax Structure:
– If the small brewery produces less than 2 million barrels, the excise tax is $7 a barrel on the first 60,000 barrels
– Over 60,000, excise tax is $18 a barrel.
Proposed Tax Structure:
– Reduces the excise tax from $7 to $3.50. The difference gives small breweries an estimated $19.9 Million for expansion & employment.
– Excise tax for barrel production from 60,000 barrels t0 2 million barrels would be lowered to $16 a barrel. An addition of $27.1 million for growth & development.
The current tax structure and legislation has not been updated since 1976. Read on for the full press release
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Senators John Kerry (D-Massachusetts)& Mike Crapo (R- Idaho) have officially introduced the BEER Act, that would lower the beer excise tax on small brewers in America. BEER stands for Brewer’s Employment & Excise Relief.
