- The so-called “Big Beautiful Bill” making its way through Congress includes several provisions that would benefit small and independent brewers. Key among them:
- Permanency of the Section 199A tax credit, that seeks to put pass-through entities (e.g., a limited liability company or S corporation) on a similar (lower) tax footing as entities taxed as corporations (i.e., C corporations).
- Extending the enhanced depreciation rules for research and development expenditures. As added by the Senate, a “fix” to Section 45Q of the tax code. Currently that provision provides a tax credit for carbon sequestration but not for re-use, potentially threatening brewers’ CO2 supply chain. The fix would put the re-use of carbon on an equal footing to sequestration.
- An attempt to amend the crypto-friendly GENIUS Act to include the Credit Card Competition Act (CCCA) narrowly failed in the Senate. The CCCA requires banks to offer additional choices in addition to the two big credit card networks. By increasing competition, the CCCA, if passed, is expected to result in lower credit card processing fees for retail businesses like brewers. Unfortunately, the CCCA ultimately was kept out of the Senate version of the GENIUS Act, but the Brewers Association plans to continue to advocate for the legislation.
On the Hill
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