The Brewers Association and the Beer Institute recently sent a joint letter to Members of Congress supporting the newly introduced Craft Beverage Modernization and Tax Reform Act of 2015 (S. 1562/H.R. 2903). The letter encourages Members of Congress to co-sponsor this piece of legislation.
The Craft Beverage Modernization and Tax Reform Act would, among other things, lower the excise tax rates for brewers as follows:
- Reduces the federal excise tax to $3.50 per barrel on the first 60,000 barrels for domestic brewers producing fewer than 2 million barrels annually.
- Reduces the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers.
- Keeps the excise tax at the current $18 per barrel rate for barrelage over 6 million.
As stated in the letter, “We expect the Craft Beverage Modernization and Tax Reform Act to enjoy broad, bipartisan support and we intend to work together as an industry toward that end.”