Updates
April 16, 2015
The Small Brewer Reinvestment and Expanding Workforce Act, known as the “Small BREW Act”, is bipartisan legislation introduced to Congress in early 2015. The overall goal of the Small BREW Act is to revamp the federal excise tax scheme for small and independent breweries headquartered in the United States, reducing their federal tax burden. There are over 3,400 breweries in the United States today. Currently, these breweries pay approximately $405 million annually in federal excise taxes. By introducing lower tax rates for small breweries with total annual production of 6 million barrels or less, the Small BREW Act would lower this overall tax burden by an estimated $60 million each year. Legislators and industry groups in support of the Small BREW Act hope these tax savings will be used by small breweries to reinvest in their businesses and continue to expand and hire additional workers, which in turn would boost local economies where small breweries operate.

The legislation currently has 41 cosponsors in the House of Representatives, and 30 cosponsors in the Senate. The craft beer industry and the U.S. small business industry as a whole is keeping a very close eye on the progress of the Small BREW Act, given the potentially significant impact the legislation could have on an influential and ever-growing segment of the U.S. economy.

To view the full alert, click here.