US craft brewers seek tax break

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 *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Supply Chain Assistant

Speciality Drinks
London NW10 7SF, UK

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
West Midlands & Northants

Supply Chain Co-ordinator

Speciality Drinks
London NW10 7SF, UK

Logistics Team Leader

Speciality Drinks
London, UK

Assistant Operations Manager

Speciality Drinks
London, UK

Technical Manager

North South Wines
West Drayton, UK

Key Account Manager

MMI Maldives
Maldives

Business Manager - Impulse

Australian Vintage
Croydon, UK

Decanter Awards Marketing Manager

Decanter
London, UK

Customer Development Manager - South London

Love Drinks Ltd
London, UK

Exclusive Masterclass: Chablis on Tour

London,United Kingdom
29th Apr 2019

Vinexpo Bordeaux

Bordeaux,France
13th May 2019

London Wine Fair 2019

London,United Kingdom
20th May 2019
Click to view more

The Global Grenache Masters 2019

Deadline : 26th April 2019

The Tuscan Masters 2019

Deadline : 26th April 2019

Click to view more

The Global Riesling Masters 2018

View Results

Rioja Masters 2018

View Results

Click to view more