Craft Beverage Modernization and Tax Reform Act gets introduced in the House

We’ve never seen the brewing associations so giddy and agreeable about a piece of legislation before, but both the Brewers Association (the trade association dedicated to craft brewers) and the Beer Institute (a trade association representing big brewers, beer importers and supply industries) jointly applauded the introduction of the Craft Beverage Modernization and Tax Reform Act (H.R. 2903) in the U.S. House of Representatives last week. The act was introduced by Reps. Erik Paulsen, R-Minn., and Ron Kind, D-Wis.

The comprehensive bill provides fair and equitable reform of the federal excise tax on beer, said the associations. If enacted, the Craft Beverage Modernization and Tax Reform Act will provide much needed tax relief to all brewers and beer importers. Mirroring the beer provisions in the Craft Beverage Modernization and Tax Reform Act (S. 1562) recently introduced into the senate by Sen. Ron Wyden, D-Ore., the House bill:

• Reduces 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.
• Reduces the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers.
• Keeps the excise tax at the current $18 per barrel rate for barrelage over 6 million.

Other original co-sponsors of the Craft Beverage Modernization and Tax Reform Act include Reps. Earl Blumenauer, D-Ore.; Peter DeFazio, D-Ore.; Lynn Jenkins, R-Kan.; Richard Neal, D-Mass.; Pat Tiberi, R-Ohio; and Steve Womack, R-Ark.

What do the brewing associations have to say about this bill? Well, let’s let them sound off:

“This legislation is a big win for the brewing industry, bringing us together over the common goal of recalibrating federal excise tax. The Craft Beverage Modernization and Tax Reform Act will greatly benefit America’s small brewers and allow them to achieve their job creation and brewing capacity reinvestment objectives,” said Bob Pease, CEO of the Brewers Association. “We thank Representatives Paulsen and Kind for their leadership in introducing this legislation and working so diligently to support America’s brewing industry. We look forward to working with our colleagues at the Beer Institute and other industry stakeholders, as well as members of Congress, to get this comprehensive, bipartisan legislation passed.”

“We thank Representatives Paulsen and Kind, and all cosponsors, for their longtime support of the beer industry. Congressman Womack has been especially instrumental in moving the idea of comprehensive beer tax reform forward. Introduction of this legislation, meant to be a companion to Senator Wyden’s, is yet another critical step forward in addressing beer excise tax reform in way that benefits everyone,” said Jim McGreevy, president and CEO of the Beer Institute. “It’s a great day when the entire brewing industry can support a solution to address an issue that has plagued us for too long. I’m excited to work jointly with the Brewers Association to reform the regressive federal excise tax on beer.”