• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • About Craft Brewing Business

Craft Brewing Business

Professional Insight, Unfiltered

Craft Brewing Business Craft Brewing Business
  • News
  • Business & Marketing
  • Packaging & Distribution
  • Equipment & Systems
  • Ingredients & Supplies
  • Webinars & White Papers
  • News
  • Business & Marketing
  • Ingredients & Supplies
  • Packaging & Distribution
  • Equipment
  • Webinars & White Papers
  • COVID-19

Beer tax reform? Not anytime soon. Congress is too busy blowing up the tax system

August 30, 2017Keith Gribbins

money america us map

The summer healthcare debate in Congress was a raging shit blizzard, but (hopefully) the deliberation over tax reform should be less fecal-storm worthy. Legislation has not been introduced yet, but democrats have somewhat signaled they’d be interested in getting something accomplished in their lifetimes (i.e. a bipartisan bill that didn’t cut taxes for the wealthy, raise the deficit or pump kick programs like Medicare and Social Security). If you’re not caught up: The GOP has plans to tackle tax reform when they return from their (um) August recess (perfect word for it), which will be on Sept. 5. The GOP has indicated they would like to a) lower taxes rates (from corporate to individual taxes), b) eliminate certain taxes altogether and c) eliminate fatty tax breaks to generate revenue.

This is bad news for the beer industry, which has been backing the Craft Beverage Modernization and Tax Reform Act (CBMTRA) for a few years now in some form or another. If made into law, the CBMTRA would:

  • 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 over 6 million barrels.
    Expanding the list of ingredients that could be automatically included in beer without federal government approval.
  • Allowing small, unaffiliated brewers to greater collaborate on new beers by giving them the flexibility to transfer beer between breweries without tax liability.

Unfortunately, it looks like Congress will be busy restructuring the big picture of taxes and will have little interest in a) focusing on industry-specific tax dilemmas and b) adding bigger loopholes for money to fall out of. U.S. Rep. Diana DeGette talked about this earlier in the week at a gathering of Denver-area brewers. She noted this act is going to float around for a bit, but it’s still very passable (especially with so much support). She gave two scenarios. From the Denver Business Journal:

First, the bill could be wrapped into any omnibus piece of tax-reform legislation, as a number of similarly targeted tax breaks are likely to try to be attached to any bill if it looks like it could achieve success. But DeGette acknowledged to the crowd of roughly 30 brewing-industry leaders at Strange Craft Beer Co. in Denver that a bill so specific as House Resolution 747 could “get lost” when Congress is considering a much bigger subject.

More likely, she said, is the prospect that a package of industry-focused bills with bipartisan support could gather support and move through Congress after the passage or failure of comprehensive tax reform.

CBMTRA was reintroduced this year and has 252 co-sponsors in the U.S. House of Representatives — 149 Republicans and 103 Democrats — which is a crazy amount. In fact, that’s 34 more votes than it needs to pass through the House, which makes this waiting game kind of a bummer.

Beer Institute poll: 68% of Americans support extending tax relief for all brewers and beer importers
america beer politics cbb crop
Craft Beverage Modernization and Tax Reform Act reaches majority support in the Senate
Beer politics flag cbb crop
House Reintroduces Craft Beverage Modernization and Tax Reform Act 
craft beer tax bill
Bipartisan beer tax bill now with majority support in Senate

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Latest News

  • State of California Craft Beer: Covid recovery challenged by competition, consolidation
  • MicroStar Logistics launches Network Services Division to manage reusable plastic pallets for the beer Industry
  • Analyst speculates on Heineken acquiring Boston Beer, stock jumps
  • United States Bartenders’ Guild now has access to WOTVS Hospitality Assistance Program

Sign up for our newsletter

unsubscribe from list

Most Popular Today

Recent Features

  • CCBA California Craft Beer SummitState of California Craft Beer: Covid recovery challenged by competition, consolidation
    March 23, 2023
  • Koga-brothers-karben4Karben4 Brewing to relaunch Ale Asylum brand
    March 20, 2023
  • 4 steps to understanding the filtration process in craft beer
    March 20, 2023
  • newbelgium_2023_wildnectar-shopping-basket_family_IMG_2Beyond beer: Examples of craft breweries exploring canned cocktails
    March 16, 2023
  • brooklyn 35 featureBrooklyn Lager turns 35 and more beers to know this week
    March 14, 2023
  • Backwoods Brewing to open a 19-acre resort called Party Acres in the Columbia River gorge this May
    March 13, 2023

Footer

  • Email Newsletter Sign Up
  • About Craft Brewing Business
  • Contact Us
  • Advertise on Craft Brewing Business
  • Media Kit Download
  • Privacy and Terms

© 2023 · CBB Media LLC