On Monday night congressional leaders came to an agreement on a tax extender package that included a one-year extension of the recalibrated federal excise tax (FET) rates for breweries and the ability to transfer beer between bonded facilities.
The Brewers Association, on behalf of its more than 5,400 members and alongside the entire beverage alcohol industry, expresses its gratitude to its legislative champions and urges the House and Senate to pass the appropriations package to fund the government and provide independent breweries which much needed certainty.
The FET rates, which were recalibrated in 2018, have been a boon to small and independent brewers located in all 50 states and nearly every congressional district, empowering them to reinvest in their businesses and resulting in an annual tax savings of more than $80 million. Brewers reinvested these savings in improved employee benefits, new equipment, expanded business plans, and the creation of thousands of new jobs. By proposing that the language be extended another year, congressional leaders have acknowledged the profound impact the reduced excise tax has had on the growth and trajectory of our uniquely American industry, which is responsible for contributing $79.1 billion to the U.S. economy in 2018 and more than 550,000 jobs.
The House passed the appropriations packed on Tuesday with the Senate expected to vote on it later this week. The legislation must be signed by the president before midnight on Dec. 20 to avoid a government shutdown. The Brewers Association will work with our congressional champions to pass the appropriations and tax extenders package but will continue to advocate for the Craft Beverage Modernization and Tax Reform Act, legislation that would make the rates permanent.