BI and BA Welcome Introduction of Craft Beverage Modernization and Tax Reform Act

Comprehensive Beer Tax Reform Bill Introduced Just Ahead of Beer’s Busiest Week

WASHINGTON AND BOULDER, CO –The Brewers Association—a not-for-profit trade association dedicated to small and independent American brewers—andthe Beer Institute—a national trade association representing brewers, beer importers and supply industries—jointly applaud the introduction of the Craft Beverage Modernization and Tax Reform Act (H.R. 2903) in the U.S. House of Representatives by Reps. Erik Paulsen, R-Minn. and Ron Kind, D-Wis. The comprehensive bill provides fair and equitable reform of the federal excise tax on beer. If enacted, the Craft Beverage Modernization and Tax Reform Act will provide much needed tax relief to all brewers and beer importers.

Mirroring the beer provisions in the Craft Beverage Modernization and Tax Reform Act (S. 1562) recently introduced by Sen. Ron Wyden, D-Ore., the House bill:

· Reduces the federal excise tax to $3.50 per barrel on the first 60,000 barrels for domestic brewers producing fewer than 2 million barrels annually.

· Reduces the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers.

· Keeps the excise tax at the current $18 per barrel rate for barrelage over 6 million.

Other original co-sponsors of the Craft Beverage Modernization and Tax Reform Act include Reps. Earl Blumenauer, D-Ore.; Peter DeFazio, D-Ore.; Lynn Jenkins, R-Kan.; Richard Neal, D-Mass.; Pat Tiberi, R-Ohio; and Steve Womack, R-Ark.

“This legislation is a big win for the brewing industry, bringing us together over the common goal of recalibrating federal excise tax. The Craft Beverage Modernization and Tax Reform Act will greatly benefit America’s small brewers and allow them to achieve their job creation and brewing capacity reinvestment objectives,” said Bob Pease, CEO of the Brewers Association. “We thank Representatives Paulsen and Kind for their leadership in introducing this legislation and working so diligently to support America’s brewing industry. We look forward to working with our colleagues at the Beer Institute and other industry stakeholders, as well as members of Congress, to get this comprehensive, bipartisan legislation passed.”

“We thank Representatives Paulsen and Kind, and all cosponsors, for their longtime support of the beer industry. Congressman Womack has been especially instrumental in moving the idea of comprehensive beer tax reform forward. Introduction of this legislation, meant to be a companion to Senator Wyden’s, is yet another critical step forward in addressing beer excise tax reform in way that benefits everyone,” said Jim McGreevy, president and CEO of the Beer Institute. “It’s a great day when the entire brewing industry can support a solution to address an issue that has plagued us for too long. I’m excited to work jointly with the Brewers Association to reform the regressive federal excise tax on beer.”

Beer is America’s favorite alcohol beverage, especially as adults celebrate summer with barbecues, baseball games and backyard gatherings. According to Nielsen, the week of the July Fourth holiday ranked as the highest beer-selling season of the year in 2014.

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The Beer Institute is a national trade association for the American brewing industry, representing both large and small brewers, as well as importers and industry suppliers. First founded in 1862 as the U.S. Brewers Association, the Beer Institute is committed today to the development of sound public policy and to the values of civic duty and personal responsibility: www.BeerInstitute.org. Connect with us @BeerInstitute and on Facebook.

The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts. The BA organizes events including the World Beer Cup^®, Great American Beer Festival^®, Craft Brewers Conference & BrewExpo America^®, SAVOR℠: An American Craft Beer & Food Experience, AHA National Homebrewers Conference, National Homebrew Competition and American Craft Beer Week^®. The BA publishes The New Brewer magazine and its Brewers Publications division is the largest publisher of contemporary and relevant brewing literature for today’s craft brewers and homebrewers.