Dive Brief:
- Sen. Ron Wyden (D-OR) introduced the Craft Beverage Modernization and Tax Reform Act, which eases the excise tax burden of brewers, cidermakers, distillers, and winemakers.
- For craft brewers producing less than 2 million barrels annually, the federal excise tax rate would be halved from $7 to $3.50 on the brewer's first 60,000 barrels.
- The Brewers Association and the Beer Institute have come together in support of the bill after previously backing separate pieces of legislation.
Dive Insight:
According to Brewbound, "The bill also allows for any domestic brewery that produces in excess of 2 million barrels to pay a decreased $16 per barrel rate on its first 6 million barrels, down from $18. Importers would pay $16 on their first 6 million barrels and $18 for every subsequent barrel."
In the past, Brewers Association and Beer Institute had not both backed the same bill mainly due to Beer Institute's legislative support of the entire beer industry while Brewers Association namely focused on craft brewers. This new legislation helps both sides. Now, united behind one bill, it is more likely that this legislation will pass.