As the text of the law has not yet been published, Congress is expected to finalize a comprehensive package by the end of the year, which will contain targeted COVID-19 relief as well as a language from the Law on the Modernization and Tax Reform of Craft Drinks (CBMTRA), with which the existing consumption tax rates of the Federal establishments are permanent for small and independent breweries. Boom! The passage of CBMTRA means collective annual savings of $ 80 million for craft breweries.
The CBMTRA is a central theme for the Brewers Association, which has been campaigning for a recalibration of excise duties since 2009. By incorporating the CBMTRA language, the congress leaders saw the impact of the reduced excise tax rate on the growth and development of this American entrepreneur’s track record. Prior to the first outbreak of COVID in the US in March, craft breweries employed more than 160,000 workers in their breweries alone, including related industry roles. The total impact was 580,000 jobs. The economic impact of craft brewing exceeded $ 82 billion in 2019, and craft breweries created more than 25,000 jobs in 2018 and 2019.
With the support of its members in every congressional district in America, the Brewers Association has become the most formidable advocate for the alcohol and beverage industry in Washington, DC. For example, this Congress supports bipartisan legislation to make federal excise rates permanent by 77 members of the Senate and 351 members of the House.
“The Brewers Association thanks the 116th Congress, especially our House and Senate lawmakers. Ron Kind (D-WI) and Mike Kelly (R-PA), Chairman Richie Neal (D-MA) and Sens. Ron Wyden (D-OR), Roy Blunt (R-MO) and Rob Portman (R- OH) – and our congressional allies on both sides of the aisle who incorporated the Craft Drink Modernization and Tax Reform Act into this imperative to pass, ”said Bob Pease, president and CEO of the Brewers Association, on which the struggle is concerned has led to an extension of the current federal consumption tax rates.
“This is much-needed good news for America’s small and independent craft brewers, who, like much of the food and beverage industry, have been hard hit by the pandemic. The last thing we needed was for our taxes to double. Passing this bill will help us continue to invest in our people and the growth of our businesses, ”said Dan Kleban, owner of Maine Beer Company, Freeport, ME. “I would like to thank our legislative champions, including Sens. Susan Collins (R-ME) and Angus King (I-ME), who have been fearless advocates for us and who have recognized that we are an integral part of the American manufacturing industry. Your work in fighting for that relief will better enable us to ramp up production and turn on taps once the pandemic has subsided. “
“With CBMTRA finalized, we now have at least some certainty about our tax liability and better planning for capital investments. These tax savings are important to small breweries like ours, especially in these unprecedented times, ”said Julie Verratti, chief brand officer and founder of Denizens Brewing Company, Silver Spring and Riverdale Park, MD.
Introduced by Sens. Ron Wyden (D-OR) and Roy Blunt (R-MO), as well as Representatives Ron Kind (D-WI) and Mike Kelly (R-PA), the Congress supported the lower FET rates with more Half of the congress is co-sponsor of the law on the modernization and tax reform of craft beverages (p. 362 / HR 1175), including 77 co-sponsors of the Senate and 351 of the House (as of December 15, 2020).