USA: Tax reduction bill for smaller brewers backed by majority of Representatives

The Craft Beverage Modernization and Tax Reform Act (CBMTRA), which was introduced in the U.S. Senate and House of Representatives on January 30, 2017 has reached now a majority of support in the U.S. House of Representatives. This week North Carolina’s Rep. David Rouzer was added as the legislation’s 218th co-sponsor. A majority of the 435 members from both parties are now endorsing the act. The companion legislation, which was introduced in the United States Senate, has currently the support of 45 from all 100 Senators. The Brewers Association Once predicts that the act, once implemented would create an additional 9,000 jobs in the United States in the first 12 to 18 months.

The CBMTRA, which is supported by industry groups like the Beer Institute, the Brewers Association, DISCUS, Wine America and Wine Institute trade groups, regulates taxes not only on beer but also wine and distilled spirits.

According to the proposed act, federal excise tax for domestic brewers producing fewer than 2 million barrels (2.35m hl) annually are reduced from $7.00 per barrel (1.17 hl) to $3.50 per barrel on the first 60,000 barrels (70,409 hl). The federal excise tax for all other brewers and all beer importers are reduced from $18 to $16 per barrel on the first 6 million barrels. All production above 6 million barrels (7.04m hl) will be taxed with $18 per barrel as before.

Additionally, the list of ingredients that could be automatically included in beer without federal government approval will be extended. The full text of the bill can be found here.

“I want to thank Rep. Rouzer as well as the 217 Republican and Democratic House members from across the country who are standing with America’s beer industry and supporting legislation that provides fair and broad tax relief and regulatory reforms to brewers of all sizes and beer importers,” said Jim McGreevy, president and CEO of the Beer Institute in a press statement. “The beer industry supports millions of U.S. jobs and generates hundreds of billions of dollars to our nation’s economy. This commonsense legislation will provide a much-needed update to the federal excise tax on beer so that all brewers and beer importers can continue to innovate and invest in their companies to meet consumer demand for America’s most popular alcohol beverage – beer.”

The Beer Institute is a national trade association for the American brewing industry, representing brewers of all sizes, as well as beer importers and industry suppliers. First founded in 1862 as the U.S. Brewers Association, the Beer Institute is committed today to the development of sound public policy and to the values of civic duty and personal responsibility.

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