Proposed Small Brew Act Seeks to Cut Taxes on Craft Brewers Nationwide

by Hannah Howard on Mar 26, 2015 in Culture
Proposed Small Brew Act Seeks to Cut Taxes on Craft Brewers Nationwide

Change in craft beer taxes are brewing on Capital Hill. Co-sponsored by Sen. Susan Collins, R-ME, and Sen. Ben Cardin, D-MD, the Small BREW Act seeks to cut burdensome taxes on small craft brewers.

With over 3,400 craft breweries in the U.S. and counting, we’re a nation of craft beer brewers and lovers.

The federal tax, first levied on brewers during the 19th century to help finance the Civil War, applies to all brewers, but the craft beer industry is lobbying for a change. 40 percent of what consumers shell out for beer goes straight to federal, state and local taxes, according to the Beer Institute.

Beer makers pay Uncle Sam for each barrel of beer they produce. The little guys—breweries that make less than 2 million barrels of beer annually— pay $7 per barrel in federal taxes on their first 60,000 barrels. After that, they pay $18 per barrel.

The Small BREW Act would halve the existing tax for the first 60,000 barrels—brewers would pay $3.50, not $7. For every barrel past 60,000 and up to 2 million, the tax would be $16. After 2 million barrels, breweries would fork over $18 per barrel to the feds.

The Brewers Association, which represents the craft beer industry, estimates the tax cuts would give back $371.4 million over five years to the nation's small brewers and create 6,000 new jobs over the first 18 months. 

Another bill currently in Congress is the Fair BEER Act. Proponents say it would offer tax relief for all brewers, not just the small ones. It would make all brewers eligible for tax breaks and extend tax cuts to the importers.

Bob Pease, president and CEO of the Brewers Association, says, “We’re making an American product – not many manufacturers in the United States these days can make that claim.” Here’s to hoping Congress shows some love to one of our beloved beverages. 

Photo via Flickr user Vinoth Chandar


Tags: Beer
Recent Articles
spacer

Feedback

How are we doing? Tell us what you like or don't like and how we can improve. We would love to hear your thoughts!

*Name:
*E-mail:
*Suggestions:
 
Behind the Bar: Liana Oster of Dante

Behind the Bar: Liana Oster of Dante

For this exciting installment of Behind the Bar, we had the incredible opportunity to sit down with Liana Oster, the head bartender at Dante in New Yo...read more ›

by The Drink Nation Jan 7, 2020
Pabst Blue Ribbon Launches Blue Ribbon Whiskey in Select US Markets

Pabst Blue Ribbon Launches Blue Ribbon Whiskey in Select US Markets

PBR has launched their own whiskey. Let's keep an open mind and see what is inside this bottle....read more ›

by Carrie Dow Sep 24, 2019
The Master Sommelier Scandal is Now the Subject of a New Investigative Series

The Master Sommelier Scandal is Now the Subject of a New Investigative Series

There's a new investigative series about one of the biggest scandals to ever hit the wine world....read more ›

by The Drink Nation Sep 13, 2019
SPONSORED
Try These Summer Cocktails This Season in D.C.

Try These Summer Cocktails This Season in D.C.

It's officially summertime in the city, and we can't think of a better way to cool off from DC's heat and humidity than with a cold, boozy cocktail in...read more ›

by Lanna Nguyen Jul 31, 2019
Using Peas to Make Gin Might Lead to More Environmentally Friendly Spirits, Studies Show

Using Peas to Make Gin Might Lead to More Environmentally Friendly Spirits, Studies Show

Scientists may have discovered a more environmentally friendly way to make one of the world's most popular spi...read more ›

by The Drink Nation Jul 23, 2019
Drink a Classic Cocktail for a Good Cause During Negroni Week, June 24-30

Drink a Classic Cocktail for a Good Cause During Negroni Week, June 24-30

Negroni Week 2019 is June 24-30, so drink this classic cocktail for a good cause....read more ›

by The Drink Nation Jun 19, 2019
What to Do if Your Uber, Lyft, or Cab Driver Ever Strays From Your Destination or Makes You Feel in Danger

What to Do if Your Uber, Lyft, or Cab Driver Ever Strays From Your Destination or Makes You Feel in Danger

If you're taking an Uber, Lyft, or cab and feel unsafe, there are steps you can take to protect yourself....read more ›

by Nina Starner Jun 19, 2019
D.C.'s Best Wine Bars

D.C.'s Best Wine Bars

Whether you're a wino or a wine novice, DC is home to a number of wine bars perfect for casual sipping or for expanding your palate. ...read more ›

by Lanna Nguyen May 29, 2019
Behind the Bar: Kat Corbo of The Study & Winner of Speed Rack 2019

Behind the Bar: Kat Corbo of The Study & Winner of Speed Rack 2019

This time on Behind the Bar, we spoke to Kat Corbo of The Study, who recently won Speed Rack 2019....read more ›

by The Drink Nation May 15, 2019
Where to Drink Outside in D.C. During Summer 2019

Where to Drink Outside in D.C. During Summer 2019

Patio weather has arrived! Grab your friends, stake a spot at the bar and take advantage of these outdoor spots for drinking and dining. ...read more ›

by Lanna Nguyen May 14, 2019
SPONSORED
View all Articles

Sign up to get weekly drinking news, bar reviews, events and more sent directly to your inbox!

Close