On June 11, 2015, Senator Ron Wyden introduced the Craft Beverage Modernization and Tax Reform Act, a bill that would promote continued job creation in the growing craft beverage, cider, wine and distillery industries throughout the United States. The bill would cut taxes and modernize outdated regulations for craft brewers, cider makers, vintners, and distillers.

Principally, the Craft Beverage Modernization and Tax Reform Act would provide the following federal excise tax structure for beer:

• Any domestic brewery that produces less than 2,000,000 barrels a year would pay $3.50/barrel on the first 60,000 barrels and $16 barrel on anything above 60,000 up to 2,000,000 barrels.
• Any domestic brewery that produces more than 2,000,000 barrels a year would pay $16/barrel on the first 6,000,000 barrels.
• All importers would pay $16/barrel on the first barrel they import through barrel number 6,000,000. Those importers that import more than 2,000,000 barrels would pay $18/barrel on any barrel over 6,000,000, like the large brewers.

In addition to tax relief, the Craft Beverage Modernization and Tax Reform Act would also reduce compliance burdens for craft beverage producers by exempting nearly 90% of all industry members from complex bonding and bi-weekly tax filing requirements.

In a press release, Bob Pease, CEO of the Brewers Association, issued the following statement on the Craft Beverage Modernization and Tax Reform Act:

“Small brewers are economic engines in this country, and the Brewers Association supports legislation that will bolster their ability to produce great beers and create jobs.

“As co-chair of the Senate Bipartisan Small Brewers Caucus, Senator Wyden has been a longtime champion for America’s craft brewers, and we appreciate his strong support. He has been diligently working to reduce federal excise taxes for craft brewers through his co-sponsorship of the Small BREW Act. Now with the introduction of the Craft Beverage Modernization and Tax Reform Act, Senator Wyden has gone even further to ensure growth for small and independent brewers.

“Not only would this legislation recalibrate excise taxes, an issue for which we have long advocated, it would ease a number of burdens for brewers, including simplifying label approvals and repealing unnecessary inventory restrictions. This comprehensive legislation, if enacted, will achieve the job creation and brewing capacity reinvestment goals of the Small BREW Act.

“This legislative introduction is possible due to the efforts of craft brewers in support of the Small BREW Act. Brewers and state guild leaders continue to build relationships with members of Congress who are listening to their needs. With their visits, emails and phone calls, small brewers have moved one step closer to excise tax relief.

“Senator Wyden, along with Senators Cardin (D-MD) and Susan Collins (R-ME), and Representatives Richard Neal (D-MA) and Erik Paulsen (R-MN), has shown exceptional leadership and support for American craft brewers. We thank them and look forward to our continued work with Congressional members on both sides of the aisle to back this important legislation.”