Here we go again for the 4th time. That’s the charm, right?
The Small Brewer Reinvestment and Expanding Workforce Act – Small BREW Act for short – was re-introduced by Representatives Erik Paulsen (R-MN) and Richard E, Neal (D-MA), (That’s both sides of the aisle, how did that happen?)
The goal of the Small BREW Act will help the lower production tiers in the brewery world. The tax rate on a brewery’s first 60,000 barrels goes from $7 to $3.50. If you are between 60,001 and 2 million barrels, the excise tax rate from $18 per barrel to $16 . You do have to brew under 6 million barrels to qualify and anything between the 2 million and 6 uses the current tax rate.
Any tax relief will be of help for those in the affected production brackets. Those are financially hard areas to break even. But I wouldn’t hold my breath. This legislation has gone further than others but still has fallen short. Maybe it can get attached to a non-attention getting Omnibus bill and slide through that route.
