US Legislation still Reviewing Excise Tax for Brewers

Two bills, which were recently under review by Congress, include redefining what a small craft beer brewery is and the reduction of the federal beer excise tax.   Currently, a small USA brewery is required to pay $18/barrel (31 gallons) in federal exercise tax for each barrel produced beyond 2Million barrels.  Small breweries now pay only $7 per barrel on the first 60,000 barrels brewed and the regional breweries pay $18/barrel above the 60,000 to $million.  Much like our country's income tax system, the more you make, the more you pay …..

The new bill would redefine a small brewery from those that produce less than 2Million barrels, and increase this level to 6Million barrels.  The bill would also reduce the excise tax from $7 to $3.50/barrel on production up to 60,000 barrels, and also from $18 to $16/barrel over the 60,000 to 2million.

Beyond allowing breweries to reduce the price of beer to the consumer, this bill would also allow additional revenue to the brewery for expansion and hiring additional employees.  This would serve as one more initiative to improve the economy.