Congress Needs To Stop Impending Beer Tax Hike

The beer industry, one of the nation’s manufacturing stars, is in danger if a tax relief bill which provided two years of federal excise tax relief to every American brewer and beer importer is not renewed.

And Congress has less than three weeks to act…

As the number of days left in 2019 dwindle, brewers and beer importers need to finalize their business plans for 2020, and it is imperative that Congress either extend or make this tax relief permanent as soon as possible.

Without congressional action, on Jan 1, large and regional beer suppliers will see their excise tax payments go up by an average of 4%, and 99% of US breweries will see their excise taxes double.

For the more than 2,000 new brewers who opened their doors after the Craft Beverage Modernization and Tax Reform Act was enacted, this tax increase will be a huge financial burden that for many startups could prove crucial.

A Washington Examiner opinion piece by the Brewers Association’s Bob Pease and Jim McGreevy President and CEO of The Beer Institute detailed some of the benefits that regional brewers have experienced since the bill passed…

• Braxton Brewing in Kentucky not only upgraded its employee benefits, providing above-average costs-of-living raises to all employees in 2018, but it also hired two new team members and invested in new equipment.
• Night Shift Brewing outside Boston saved nearly $140,000 and funded a construction loan for a brand-new taproom and brewery. On top of that, it was able to add more than 100 new jobs across the business.
• Wolf’s Ridge Brewing in Columbus, Ohio, added cellar capacity, hired two employees, and opened a second location, which will significantly increase production capacity and lead to the hiring of six to 10 additional employees over the next year. The company also added a 401(k) program.
• 4 Hands Brewing in St. Louis added three full-time positions, upgraded its canning line, and bought a new keg washer. It also focused on employee benefits and compensation and now provides employees with full health coverage and a 401(k) that sees a 3% contribution from the company with no match needed.
• Peace Tree Brewing in Iowa seized its opportunity to grow, adding fermentation space and hiring another employee

And with a November survey by Quadrant Strategies showing than two-thirds of Americans, including majorities of conservative, moderate, and liberal voters, want legislators to extend the current excise tax rates Congress needs to take a break from all the impeachment drama and act.

In the op-ed, Pease and McGreevy strongly urged Congress to do whatever it takes to pass this critical legislation before Dec. 31, astutely pointing out that extending the lowered excise tax rates already has unprecedented bipartisan support…

“Democratic Sen. Ron Wyden and Republican Sen. Roy Blunt, along with Democratic Rep. Ron Kind and Republican Rep. Mike Kelly, have led the way by reintroducing the Craft Beverage Modernization and Tax Reform Act, legislation that would make this tax relief permanent for all our nation’s brewers and beer importers. With less than a month to go before expiration, 74 senators and more than 320 representatives across the country and the ideological spectrum have added their names in support.”

American Craft Beer stands with the Brewers Association and the Beer Institute in their call to extend or make permanent the tax relief that has been so beneficial to our nation’s brewers.

And the US Congress needs to take action now…