Brewers Association

Senator Touts Small Brewers Bill to Boost Economy

Idaho Senator Mike Crapo looks on as Dan Kopman address the crowd at  Portneuf Valley Brewing Co, this past Saturday.

Idaho Senator Mike Crapo looks on as Dan Kopman address the crowd at Portneuf Valley Brewing Co, this past Saturday.

Senator Mike Crapo (R-ID) joined representatives of the Idaho Grain Producers Association, the Brewers Association and Portneuf Valley Brewing to speak on a piece of legislation Crapo helped introduce earlier this year. The bill, S.3339, which now has a total of 24 sponsors, is aimed at creating jobs in an industry segment that has become recognized as a bright spot in the nations economy that has struggled to pull out of a stubborn recession.

S. 3339 would lower the excise tax paid by small brewers from $7.00, for the first 60,000 barrels, in half to $3.50 on the same amount of beer produced. Backers believe the reduction would allow for many of America's small brewers to make capital investments in their brewhouses, resulting in the ability to hire workers and better compete in both the national and possibly international marketplace.

In an earlier press release, Penny Pink of Portneuf Valley Brewing Company in Pocatello, Idaho explained how S. 3339 would benefit her business, “In the past year I have invested tens of thousands of dollars into expanding my brewing capacity at Portneuf Valley Brewing,” said brewery owner Penny Pink.  “The proposed Excise Tax Reduction bill will definitely help my business, as well as more than 1500 other small craft brewers in the United States, by allowing us to reinvest the $3.50 per barrel excise tax reduction back into our businesses to improve our operations by adding to or improving our existing brewing equipment and hiring new employees to run that equipment.  Reinvestment of the tax savings by America's craft brewers will generate jobs and ultimately additional tax revenues at many levels.”

Crapo believes that the bill would be a "win-win" opportunity for not only the brewers but surrounding business in his home state of Idaho which bosts over twenty breweries and is home to much of the coutry's grain production for brewers.

“It [S.3339] helps facilitate and give a hand to the small brewers so they can be competitive in the global market place and get beyond Idaho markets to national and maybe even international markets," crapo said during the visit.

Nationally, the craft brewing industry grew 9% by volume and 12% by retail dollars in the first half of 2010. Despite the success, the industry represents less than 5% of the overall beer market in the United States. Crapo believes that the bipartisan support will help the bill pass. For more information on S. 3339 or the House companion bill, HR 4278, visit the excise tax page of this site.

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