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The Craft Beverage Modernization and Tax Reform Act Is Passed by Congress

Thursday, December 21, 2017   (0 Comments)
Posted by: Lisa Graham
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Congress gave American brewers an early Christmas present with the passage of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which lowers the federal excise tax for breweries, wineries and distilled spirits producers. Passage of the Act is expected to produce $142 million in savings for America’s brewers including $80 million in savings for breweries producing under 6 million barrels annually.

 

For the first time, the associations that champion beer, wine and distilled spirts rallied together to lobby for lowering the tax burdens imposed on the industry. Championed by Congressional members including Roy Blunt (R-Mo), the Act provides federal excise tax relief to smaller brewers specifically with:

  • Lowering the federal excise tax on beer to $3.50/barrel from $7.00/barrel on the first 60,000 barrels for domestic brewers producing less than 2 million barrels annually. All other brewers and beer importers will see a reduction on the excise tax from $18/barrel to $16/barrel on the first 6 million barrels.
  • Permitting transfer of beer between bonded brewing facilities without tax liability.

As accountants and consultants to the brewery and brew pub/restaurant industry, we help clients understand how the passage of the CBMTRA will impact them and also work with them to gain the most benefit from the Tax Act .  If you have questions about the impact of this recent change, please contact us.

 

You can learn more about how we help entrepreneurial brewers with payroll, business and tax advice at mizehouser.com/brewers.  

Ken Hite, CPA, Shareholder, Mize Restaurant Group


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