Representative McCotter (MI) Latest Co-sponsor on Small Brewer Excise Tax Reduction Legislation

ount of U.S. House of Representative sponsors of H.R. 4278 is now 71.

Currently, a small brewer that produces less than 2 million barrels of beer per year is eligible to pay $7.00 per barrel on the first 60,000 barrels produced each year.  Once production exceeds 60,000 barrels, a small brewer must pay the same $18 per barrel excise tax rate that the largest brewers pay.  H.R. 4278 creates a graduated beer excise tax rate of $3.50 and $16.00 for America’s small brewers, while also increasing the annual barrelage threshold to qualify as a small brewer to 6 million barrels.

$3.50 Rate
Reducing the rate on the first 60,000 barrels to $3.50 per barrel would provide approximately $15.5 million per year to help strengthen our nation’s smallest brewers and support their efforts to maintain and generate jobs. 

$16.00 Rate
Lowering the tax rate to $16 per barrel on beer production above 60,000 barrels up to 2 million barrels would provide small brewers with an additional $26.2 million per year that would be used to support significant long-term investments and create jobs by growing their businesses on a regional or national scale.

For more information, including a full listing of current cosponsors and information on how to contact your U.S. Representative, visit our resources page.

Pete serves as programs manager for the Brewers Association, with primary responsibilities in the areas of government affairs and membership programs. 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.

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