For 2020, the percentage of non‐deductible dues pertaining to your tax return is 6.0%. This non-deductible percentage represents the amount that cannot be claimed as a business expense by Brewers Association members on their 2020 tax returns.
Lobbying funds for the professional division in 2020 were related primarily to communications to educate elected federal representatives, senators, and their staffs on issues affecting small and independent brewers. These issues include the successful passage of the Craft Beverage Modernization and Tax Reform Act, which reduces the federal excise tax by 50% for most brewers.
Your dues payment as a business expense for the year 2020 will be limited by the percentage of dues that went towards supporting lobbying activities, and only the remaining portion of your dues can be claimed as an expense on your federal tax return. Contact your tax professional to determine the deductibility of your membership dues.
If you have any questions about the implications of this information, we recommend you discuss with your accountant(s). If you need further information from the Brewers Association regarding this topic, please contact me.