WASHINGTON – The Beer Institute, a national trade association representing brewers, beer importers and supply industries, issued a statement today in support of the Craft Beverage Modernization and Tax Reform Act, S. 1562, proposed by Sen. Ron Wyden, D-Ore., which provides fair, equitable and comprehensive reform of the federal excise tax on beer. The Beer Institute has been working to find common ground to unite the brewing industry behind one federal excise tax relief bill. The Wyden proposal accomplishes that.
Notably, the Wyden proposal:
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.
“We applaud Senator Wyden for this positive step forward in addressing beer excise tax reform in a fair, equitable and comprehensive way,” said Jim McGreevy, president and CEO of the Beer Institute. “The beer-specific provisions of this bill move the ball forward for brewers of all sizes. We know that when all facets of the industry agree, we are stronger together.”
Like the Fair BEER Act, which is supported by the Beer Institute, the National Beer Wholesalers Association (NBWA) and others, this legislation takes a comprehensive approach to reform and includes all types of brewers and beer importers. The Fair BEER Act was introduced in February with bipartisan, bicameral support.
“We got to this point because of the leadership from Sens. Roy Blunt, R-Mo., and Tammy Baldwin, D-Wis. and Reps. Steve Womack, R-Ark., and Ron Kind, D-Wis., and the partnership of groups like NBWA, on the Fair BEER Act and their support of fair, equitable and comprehensive beer tax reform,” McGreevy said. “We look forward to working with Sen. Wyden and others on ways we can grow support for the beer provisions of this new bill. And we will work very hard to ensure that beer drinkers, who ultimately pay these hidden excise taxes, get tax relief.”