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U.S. House Of Reps Unveils Plan To Lower Craft Brewer Taxes

June 26, 2015

With the craft beer boom in full swing, lawmakers in the U.S. House of Representatives have introduced a bipartisan bill to lower taxes for craft brewers. The Craft Beverage Modernization and Tax Reform Act, introduced by representatives Erik Paulsen of Minnesota and Ron Kind of Wisconsin, would reduce the federal excise tax to $3.50 a barrel on the first 60,000 barrels for domestic brewers producing fewer than 2 million barrels annually. It would also trim excise to $16 per barrel on the first 6 million barrels for all other brewers and beer importers, while leaving the rate at $18 per barrel on production over that threshold.

The bill, which mirrors a similar initiative underway in the U.S. Senate, is being hailed by both the Brewers Association, representing craft brewers, and the Beer Institute, which represents both large and small brewers as well as importers and industry suppliers. Craft beer reached an 11% volume share of the total U.S. beer market in 2014, according to the Brewers Association, breaking the double-digit threshold for the first time.

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