Craft Beverage Modernization and Tax Reform Act won its 218th co-sponsor in the U.S. House of Representatives, which means it should be able to pass.
The bill is supported by most of the beer industry, and Brewers Association and Beer Institute are working together to pass the bill.
Specific 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 over 6 million barrels.
- Reducing bonding and filing requirements for the 90% of American craft breweries that pay less than $50,000 per year in federal excise taxes.
- Expanding the list of ingredients that could be automatically included in beer without federal government approval.
- Allowing small, unaffiliated brewers to greater collaborate on new beers by giving them the flexibility to transfer beer between breweries without tax liability.
Jim McGreevy, president/ceo, Beer Institute, said the bill is “a fair, broad and bipartisan solution to a decades-old problem. The beer industry prides itself on the quality ingredients and dedication that goes into every pour. This legislation will build on that tradition by updating the antiquated tax code and regulations impacting the beer industry.”
“Beer is as bipartisan as it gets,” said Bob Pease, president/ceo , Brewers Association. “Brewers large and small stand together in support of this critical legislation, Democrats and Republicans have shown the same unity. We’re grateful for the degree of support behind this bill, which will have a profound impact on the breweries in this country that are actively contributing to our culture and economy.”