The Craft Beverage Modernization and Tax Reform Act (CBMTRA) was reintroduced in the U.S. House of Representatives yersterday by Representatives Ron Kind (D-WI) and Mike Kelly (R-PA) with support from eight original co-sponsors. The legislation was first introduced in 2015 to recalibrate federal excise taxes and streamline regulations on alcohol beverage producers enjoyed broad support in the 115th legislative session with more than half the U.S. Congress (303 representatives and 56 senators) supporting the bill. Legislation that included a two-year provision of the language from CBMTRA was passed in December 2017 and is set to expire on December 2019. The current bill was re-introduced to make the current federal excise rate language permanent.
“The Craft Beverage Modernization and Tax Reform Act saves small brewers nearly $80 million each year the calibration is in place and provides our members with additional capital enabling them to further invest in their businesses,” said Bob Pease, president and CEO of the Brewers Association. “The Brewers Association is grateful for the support from our champions in Congress and their dedication to getting these provisions enacted into law. Today we are focused on working together to make them permanent, benefitting not only the brewing industry but the entire U.S. economy.”
Since the enactment of CBMTRA, 99 percent of small brewers have realized a 50 percent reduction of their federal excise tax. The reinvestment of these savings has sparked a variety of economic gains across the craft brewing industry. According to a survey conducted by the Brewers Association.
- 73 percent of breweries are purchasing new equipment, upgrading their tasting rooms and breweries, moving to new buildings, etc.
- 53 percent of breweries are hiring new employees
- 39 percent are increasing their employee benefits by raising pay, offering insurance and expanding vacation time
- 21 percent are increasing their charitable contributions
- 58 percent are doing two or more of the above-mentioned actions
The Brewers Association, in collaboration with a broad group of industry trade associations including the Beer Institute, WineAmerica, Wine Institute, Distilled Spirits Council, American Craft Spirits Association and U.S. Association of Cider Makers, was highly influential in generating wide support for the legislation and seeing the CBMTRA language pass through Congress in 2017. The bill was sponsored by the majority of both chambers of Congress and was endorsed across industries including the National Barley Growers Association, Hop Growers of America, National Association of Manufacturers, Canning Manufacturers Institute, Glass Packaging Institute, National Corn Growers Association, and the Wine Grape Growers of America. The legislation was reintroduced in the Senate on February 6, 2019 by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO).