Since 2018, small and independent breweries have enjoyed recalibrated and lower federal excise taxes (FET):
- $3.50/barrel (reduced from $7/barrel) on the first 60,000 barrels for domestic brewers producing less than two million barrels annually
- $16/barrel (reduced from $18/barrel) on the first six million barrels for all other brewers and all beer importers
- The provisions maintained the current $18/barrel rate for all barrelage over six million
Breweries have been using the money saved to hire new employees, increase benefits, purchase equipment, and invest in economic development. Unfortunately, if the recalibrated rates aren’t extended or made permanent, the lower federal excise tax rate is set to expire on Dec. 31, 2019.
Senators Ron Wyden (D-OR) and Roy Blunt (R-MO), and Representatives Ron Kind (D-WI) and Mike Kelly (R-PA) introduced the Craft Beverage Modernization and Tax Reform Act of 2019 (S.362/H.R. 1175) to make the current FET rates for breweries permanent.
Last congress, thanks to the efforts of the Brewers Association and our members, more than 50 percent of the U.S. Congress co-sponsored the bill that helped recalibrate the FET. With your help we can get just as many co-sponsors on the Craft Beverage Modernization and Tax Reform Act of 2019 (S.362/H.R. 1175).
Your senators and representatives need to hear from you about how the Craft Beverage Modernization and Tax Reform Act of 2019 (S.362/H.R. 1175) impacts your brewery, the brewery you work for, or the brewery you supply.
What You Can Do Now
Click here to quickly and easily email your representative and two senators asking them to sign on as co-sponsors. You can send the auto-populated letter as is or you can edit it with additional information.
Thank you in advance for speaking up on behalf of the 7,100+ breweries located across the U.S. If you have any questions please don’t hesitate to reach out to me, Katie Marisic, Brewers Association federal affairs manager.