Michigan Breweries Benefit from Craft Beverage Modernization and Tax Reform Act
New Historic Tax Law Affects 300+ breweries in the Great Beer State
LANSING, Mich— A 2-year version of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which lowers the federal excise tax for breweries, was passed on Wednesday, December 20, 2017 by the 115th U.S. Congress. This savings will allow Michigan’s nearly 300 small brewers, including many manufacturers and entrepreneurs, to reinvest in their businesses, expand their operations and hire more workers.
Under the bill, the federal excise tax will be reduced to $3.50/barrel (from $7/barrel) on the first 60,000 barrels for domestic brewers producing less than 2 million barrels annually, and reduced to $16/barrel (from $18/barrel) on the first 6 million barrels for all other brewers and all beer importers. The bill would maintain the current $18/barrel rate for barrelage over 6 million. The legislation is currently written as a 2-year provision. The provisions of this bill are effective January 1, 2018.
The effort to bring meaningful federal excise tax relief to small brewers has been a primary political objective for the Brewers Association (BA) and state guild from across the country for almost 10 years.
“We would like to thank all of our brewery members who have helped support of this effort over the years traveling to DC and reaching out locally to emphasize the importance of this legislation and how it will help stimulate economic growth and create jobs throughout Michigan. We would especially like to recognize the Brewers Association for their tireless leadership,” Scott Graham, Executive Director of the Michigan Brewers Guild.
“Our expectation is that small brewers will use their savings related to the re-calibration of the federal excise tax on beer to invest in their breweries, expand their operations, create more jobs and hire more American workers,” said Bob Pease, president and CEO, Brewers Association. “We are very appreciative that Congress has enacted these bipartisan, strongly supported measures.”
“We are very excited to invest our tax savings back into our brewery and our people,” says David Manson, Ambassador of Fermentology of Blackrocks Brewery in Marquette.
Currently, Michigan craft brewers contribute over $2 billion to the state’s economy and are responsible for an estimated 14,400+ jobs.
We’d like to thank House of Representatives co-sponsors Jack Bergman (R), Bill Huizenga (R), John Moolenaar (R), Daniel Kildee (D), Fred Upton (R), Tim Walberg (R), Mike Bishop (R), Paul Mitchell (R), David Trott (R), Debbie Dingell (D), John Conyers, Jr. (D), and Brendan Lawrence (D); as well as Senate co-sponsors Debbie Stabenow (D) Gary Peters (D) who supported the bill> for joining 303 and 54 of their House and Senate colleagues as co-sponsors of this bill. Their support will help <State>’s small and independent brewers continue to grow and thrive.