Provisions of the Craft Beverage Modernization and Tax Reform Act of 2019 (S. 362; H.R. 1175) were included in the year-end legislative package addressing further COVID relief measures and government operational funding, signed into law by the President on December 27. The legislation makes permanent the tax and other provisions passed as part of the Tax Cut and Jobs Act which was signed into law in the closing days of 2017 on a temporary, two-year basis. Specific tax provisions relating to beer include: reducing 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; reducing the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers; keeping the excise tax at the current $18 per barrel rate for barrelage over 6 million. Additional provisions address the in-bond transfer of beer between breweries and modifications to the single taxpayer rule for beer, wine, and spirits.
Pete Johnson serves as the State & Regulatory Affairs Manager for the Brewers Association (BA). He joined the BA at its inception in 2005, having previously worked as Programs Director for the Brewers Association of America. Before coming to the small brewing industry in 2001, Pete worked for 14 years with both state and federal elected officials in Pennsylvania and Washington, D.C.See Pete Johnson's Articles