Craft beer is more popular than ever right now—and not just with the imbibing public. Did you know that there is even a Small Brewers Caucus in the House of Representatives? The group of 142 lawmakers is currently working to pass two bills to relieve the tax burden on small breweries.
The first bill is called the Small BREW Act, which would reduce federal taxes for these smaller beer companies. Lawmakers say that giving a tax break to these breweries will help grow the industry and, in turn, create jobs.
Breweries producing less than two million barrels of beer per year currently pay a tax of $7 per barrel on the first 60,000 barrels and $18 for each barrel after that. The Small BREW Act would reduce taxes to $3.50 per barrel on the first 60,000 barrels and $16 on each subsequent barrel.
The second proposed bill, the Fair BEER Act, would relieve breweries that produce 7,143 barrels or less per year of federal excise tax, the fee normally imposed on each barrel of beer produced. However, the bill would also give a tax break to brewers who produce more than two million barrels, which some opponents of the bill say is unfair to smaller breweries.