US craft brewers seek tax break

2nd April, 2013 by Rupert Millar

Craft brewers in the US are lobbying the Federal Government for a tax break but so are the larger brewers.

beer bottle topsThe “Small Brewer Reinvestment and Expanding Workforce Act” of “Small BREW Act” seeks to reduce the tax paid on the first 60,000 barrels from US$7 to $3.50 and on the all following 31 gallon barrels from $18 to $16.

As reported by the New York Times, currently brewers pay $7 in tax on the first 60,000 barrels, and then $18 for every barrel after that.

However, the craft brewers argue that only around 100 of them in the whole country produce more than 15,000 barrels a year – compared to the likes of AB InBev, which produces close to 98.5 million.

Their proposal would see the tax dropped to $3.50 up to 60,000 barrels, $16 a barrel until two million and then the full $18 per barrel on anything over two million.

This would allow larger but not multinational breweries such as the Boston Beer Company – which produces Samuel Adams – to benefit as well.

The argument goes that with these cuts it would be easier for smaller companies to brew more beer and hire more workers.

“Beer is sort of a recession-proof industry,” Jill McCluskey, a professor of agricultural economics at Washington State University, told the New York Times. “In bad economic times, it’s something that people can still afford.”

The act was launched last month by representative Jim Gerlach (Republican, Pennsylvania) and already has 61 co-sponsors from across the political spectrum.

It was being pushed at the first craft brewers conference in Washington DC last week.

At the event the organisers, The Brewers Association, announced that 409 breweries and brew pubs opened in the US last year – a rise of 18.5%.

Furthermore, craft beer’s share of the market grew from 5.7% to 6.5% between 2011 and 2012, with $10.2bn spent on craft beer representing 10.2% of all money spent on beer in 2012.

Proof, claimed The Brewers Association, of beer’s resilience whatever the economic situation.

However, the Beer Institute, which includes AB InBev and MillerCoors among its members, said it would “actively oppose” the BREW act.

Vice president of the Beer Institute, Chris Thorne, said: “We are going to actively oppose this legislation.

“If the entire industry is unified and has one ask, we stand a far better chance of succeeding than when we have multiple bills to push.”

One Response to “US craft brewers seek tax break”

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Administrative Assistant

Swig Wines Ltd
Chiswick, London, UK

HR Manager

Amathus Drinks PLC
London, UK

Senior Sales Manager

Haynes Hanson & Clark
Gloucestershire, GB

Customer Services Administrator

Speciality Drinks Ltd
London, UK

National Business Development Manager

Speciality Drinks Group
London, UK

Inventory Analyst

Bibendum PLB
London, UK

Events Executive - Atom Supplies

ATOM Supplies Limited
London, UK

Off-Trade Sales Account Executive

Domaine Direct
Nationwide, working from a combination of home & London office.

Sales Executive/Brand Ambassador

Glenfarclas
Ballindalloch, Speyside, UK

Client Manager

Noble Rot
Wandsworth, London, GB

Spirits Investment Director

Stilnovisti
London, UK

Junior Brand Manager

Enotria Winecellars
Park Royal, London, UK

Content & Digital Assistant

ABVGlobal
London, UK

Sales Manager

Cellar Trends
London, UK

Editorial Assistant

Wine List Confidential
London, UK

Champagne Masters 2017

Deadline : 7th July 2017

The Global Sparkling Masters 2017

Deadline : 10th July 2017

The Global Malbec Masters 2017

Deadline : 10th July 2017

The Global Syrah Masters 2017

Deadline : 18th July 2017

Click to view more

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

Click to view more