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Michigan Craft Breweries Benefit from Craft Beverage Modernization and Tax Reform Act

21-Dec-2017

New Tax Law Affects 300+ Breweries in the Great Beer State

Michigan Brewers Guild 20th Anniversary Logo

(LANSING, Mich)—A 2-year version of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which lowers the federal excise tax for breweries, was passed on Wednesday, December 20, 2017 by the 115th U.S. Congress. This savings will allow Michigan’s nearly 300 small brewers, including many manufacturers and entrepreneurs, to reinvest in their businesses, expand their operations and hire more workers.

Under the bill, the federal excise tax will be reduced to $3.50/barrel (from $7/barrel) on the first 60,000 barrels for domestic brewers producing less than 2 million barrels annually, and reduced to $16/barrel (from $18/barrel) on the first 6 million barrels for all other brewers and all beer importers. The bill would maintain the current $18/barrel rate for barrelage over 6 million. The legislation is currently written as a 2-year provision. The provisions of this bill are effective January 1, 2018.

The effort to bring meaningful federal excise tax relief to small brewers has been a primary political objective for the Brewers Association (BA) and state guild from across the country for almost 10 years.

“"We would like to thank all of our brewery members who have helped support of this effort over the years traveling to DC and reaching out locally to emphasize the importance of this legislation and how it will help stimulate economic growth and create jobs throughout Michigan. We would especially like to recognize the Brewers Association for their tireless leadership,” Scott Graham, Executive Director of the Michigan Brewers Guild.

“Our expectation is that small brewers will use their savings related to the recalibration of the federal excise tax on beer to invest in their breweries, expand their operations, create more jobs and hire more American workers,” said Bob Pease, president and CEO, Brewers Association. “We are very appreciative that Congress has enacted these bipartisan, strongly supported measures.”

“We are very excited to invest our tax savings back into our brewery and our people,” says David Manson, Ambassador of Fermentology of Blackrocks Brewery in Marquette.

Currently, Michigan craft brewers contribute over $2 billion to the state’s economy and are responsible for an estimated 14,400+ jobs.

We’d like to thank House of Representatives co-sponsors Jack Bergman (R), Bill Huizenga (R), John Moolenaar (R), Daniel Kildee (D), Fred Upton (R), Tim Walberg (R), Mike Bishop (R), Paul Mitchell (R), David Trott (R), Debbie Dingell (D), John Conyers, Jr. (D), and Brendan Lawrence (D); as well as Senate co-sponsors Debbie Stabenow (D) Gary Peters (D) for joining 303 and 54 of their House and Senate colleagues as co-sponsors of this bill. Their support will help Michigan’s small and independent brewers continue to grow and thrive.

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The Michigan Brewers Guild is the network of innovative and passionate brewers that serves as the recognized advocate for the Michigan craft beer industry. The mission of the Guild is to promote and protect the Michigan craft beer industry with an overarching goal to help craft beer acquire 20% of the market by 2025.

Michigan’s thriving brewing industry conservatively contributes more than $144 million in wages with a total economic contribution of more than $600 million. In terms of overall number breweries, microbreweries and brewpubs, Michigan ranks #6 in the nation – thus supporting its claim as “The Great Beer State.”

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Michigan Brewers Guild is a proud member and supporter of the following organizations:

Brewers Association | Michigan Agri-Tourism Association | Michigan Association of Society Executives | Michigan Beer & Wine Wholesalers Association | Michigan Department of Agriculture & Rural Development | Michigan Department of Natural Resources (DNR) | Michigan Festivals & Events Association | Michigan Grocers Association | Michigan Licensed Beverage Association | Michigan Lodging & Tourism Association | Michigan Restaurant Association | Michigan Snowsports Industries Association | Michigan State University – Extension | Michigan Trails | The Nature Conservancy | Tourism Industry Coalition of Michigan (TICOM) | Travel Michigan (MEDC — Pure Michigan) | West Michigan Tourist Association

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