Small BREW Act decreases per barrel excise tax
Washington, D.C. –-(ENEWSPF)–January 9, 2015. Congressmen Erik Paulsen (MN-03) and Richard Neal (MA-01) yesterday led a bipartisan group of Members in introducing legislation to reduce the tax burden on America’s small brewers. Joining Paulsen and Neal in the introduction of the Small Brewer Reinvestment and Expanding Workforce (BREW) Act were Rep. Peter DeFazio (OR-04), Rep. Earl Blumenauer (OR-03), Rep. Patrick McHenry (NC-10), and Rep. Patrick Meehan (PA-07). The bill reduces the excise taxes on the sale of the first 2 million barrels of beer sold by small brewers each year.
“The rise in the popularity of craft brewing is a quintessential American success story,” said Paulsen. “Many of these brewers start out enjoying a hobby, but end up growing businesses that create jobs and provide a product that people enjoy. The tax code needs to catch up to the nature of the brewing industry and not penalize the nation’s small brewers.”
“As someone who represents many small brewers in Massachusetts, I can attest that craft breweries are locally owned, generate economic development and create good jobs” said Congressman Neal. “They also make distinctive products for passionate consumers. I have been a vigorous supporter of the industry, and today, in a bipartisan manner, we are introducing legislation that gives these small brewers a substantial tax break. Our bill rightfully recalibrates the beer excise tax for America’s craft brewers, allowing them to grow and reinvest in their businesses. I look forward to working with my colleagues to get this initiative approved by the House of Representatives during this session of Congress.”
“Small brewers have an outsized impact on Oregon’s economy, with hundreds of craft breweries, and thousands of employees,” said Congressman Blumenauer. “It’s no surprise that with great hops, pure water, and Oregon’s local ethic, Oregon brewers produce some of the finest beers around. I’m proud to support them with the Small BREW Act and reduce their tax burden as they are starting out.”
“Our nation’s burgeoning craft brewing industry is a testament to the strength and importance of small business,” said Congressman DeFazio. “In my district alone, there are more than two dozen craft breweries. Each one contributes to the local economy, which is why I’m happy to advocate for policies that allow small business owners to flourish, create jobs and continue making great beer. In the end, we all win.”
“Small brewers – long an important part of American culture and history – have enjoyed a tremendous growth in popularity in recent years,” said Congressman Meehan. “But while our brewing industry has evolved, our tax code hasn’t evolved with it. Outmoded federal excise taxes inhibit the growth of small brewers and make it harder for fledgling businesses to survive and prosper. This legislation will ease the tax burden on small brewers like Victory Brewing in Pennsylvania and help them expand and create jobs.”
The text of the Small BREW Act is available here.