BA Intro’s Small BREW Act

For a third consecutive year, the Brewers Association sponsored Small BREW Act was introduced in the House of Representatives by Reps Erik Paulsen (R-Minn) and Richard E Neal (D-Mass). The Senate companion bill is expected soon.

The bill to recalibrate the federal excise tax on beer is the same as last year’s bill. The bill would reduce the excise tax from $7.00 to $3.50 on the first 60,000 bbls produced by any brewery producing less than 6 million bbls annually. The bill would also reduce the rate from $18.00 to $16.00 on production between 60,000 bbls to 2 million bbls. Perhaps most importantly, and controversial, is that the bill refines a “small brewer” for purposes of tax rate from 2 million to 6 million bbls of annual production.

Unlike past years, strong opposition has surfaced by both the Beer Institute (BI) and the National Beer Wholesalers Association (NBWA). Both sent letters to Congress last month urging them not to sign on as co-sponsors.