Craft Beverage Tax Reform Clears Major Congressional Hurdle

The Craft Beverage Modernization and Tax Reform Act (S.236) seeks to bring tax relief and other reforms to the craft beer and related industries. Today, it was announced that Oklahoma Senator James Inhofe has endorsed the bill, making him the 51^st Senator to back the legislation. This means the bill now has a majority of supporters in both the U.S. House and Senate.

Bob Pease, President and CEO of the Brewers Association, says the support shown for this bill is great for small businesses and the local economies that rely on them for jobs.

“America’s small craft brewers are incredibly proud and appreciative of the strong bipartisan and bicameral support that we have received from the United States Congress,” said Pease. “We are small Main Street manufacturers located in virtually every Congressional District in the country, and employing more than 130,000 Americans. We truly are an American success story built on the passion that our small brewers have for their craft and their communities. Members of Congress see that passion, determination and success, and want to foster it. That is why more than half the United States Congress has co-sponsored the Craft Beverage Modernization and Tax Reform Act. We are hopeful that this consensus legislation can be enacted this year.”

Jim McGreevy, President and CEO of the Beer Institute, says the broad base of congressional support shows that, at least when it comes to beer, members of different political parties can find common ground and work together.

“Beer is bipartisan, and I want to thank the broad coalition of Senators and House members from across the country for supporting this common sense legislation that will provide critical tax relief to America’s brewers and beer importers,” said McGreevey. “The beer industry helps to support more than 2.2 million American jobs in every congressional district across the country. I look forward to Congress taking up the bill and moving it to President Trump for his signature so that brewers and beer importers can continue to invest in their businesses to meet consumers’ demand for beer.”

What’s great about this piece of legislation is that it also affects other craft beverage industries in a positive way. Distilled Spirits Council President and CEO Kraig Naasz says the impact on distilleries will be felt immediately by localities desperate for economic stimulation.

“As the distilling sector continues its growth with more than 1,200 operating distilleries nationwide, lawmakers clearly appreciate the important role these distilleries play in creating jobs, boosting tourism and supporting agriculture,” said Naasz.  “Passing this much-needed tax reform legislation will spur further investment and job creation by reducing the excessive tax burden on distillers small and large.”

First introduced in the United States Senate by Ron Wyden (D-OR) and Roy Blunt (R-MO) in January, 2017, and then in the U.S. house by Representatives Erik Paulsen (R-MN) and Ron Kind (D-WI), this important legislation modernizes the tax structure for brewers, winemakers, distillers and importers of alcoholic beverages, making the tax burden less impactful and fairer for small business. With less worry about taxes, breweries, wineries, and distilleries will have an easier time getting through the startup phases and will have additional funds available to invest more in their companies, growing jobs in the process.

Now that the Craft Beverage Modernization and Tax Reform Act has the Congressional support it needs, it is only a matter of time until the bill becomes the law of the land. Breweries, wineries, and distilleries from coast to coast are hoping the legislation is signed into law within the next few months.