WASHINGTON, D.C. – U.S. Reps. Ron Kind (D-WI) and Mike Kelly (R-PA) have introduced the bipartisan Craft Beverage Modernization and Tax Reform Act, which will grow America’s craft beverage industry by reducing the tax burden and restrictive regulations for brewers, cider-makers, distillers and vintners.
“In Wisconsin, our craft brewers produce over one million barrels of beer a year. Not only are our breweries a source of pride and a large part of our state’s culture, but they also support our local economy and create jobs. I am proud to introduce this bipartisan bill, which will help grow our craft breweries, cideries, distilleries and vineyards, open new markets, and create good-paying, meaningful jobs here in Wisconsin,” said Kind.
“Pennsylvania has a rich history in the craft beverage industry that dates back to the 1600s, particularly in the production of beer. Today, with hundreds of craft breweries across the commonwealth, these small businesses have an incredible story to tell as they carry on the beer making tradition. In addition to making some of the best beer in the nation, Pennsylvania craft producers are creating jobs and revitalizing entire communities. Pennsylvania’s craft brewers, distillers, cideries and vintners truly exemplify the American dream and our country’s spirit of entrepreneurship. I look forward to working with my friend and colleague Representative Kind to ensure that Congress continues to help these job-creators by reducing burdensome excise taxes and regulations,” said Kelly.
According to the Beer Institute, America is home to nearly 6,000 breweries. Directly or indirectly, the brewing industry employs over 2.2 million Americans.
Jim McGreevy, president and CEO of the Beer Institute, added: “I want to thank Reps. Kind and Kelly for their continued commitment to providing excise tax relief to all of our nation’s brewers and beer importers. Since our nation’s inception, brewers and beer importers have been integral to our national fabric. Today, America’s beer industry continues to be a crown jewel in our nation’s manufacturing sector, supporting more than 2.2 million good-paying jobs and pouring more than $350 billion into the national economy. Making federal excise tax relief permanent for our nation’s brewers and importers will enable them to continue to innovate, invest in their businesses, support jobs, and give back to their communities.”
The Craft Beverage Modernization and Tax Reform Act reduces excise taxes, compliance burdens and regulations for the 5,300 breweries, 8,000 wineries and 800 distilleries across the country. Lower rates for brewers and craft beverage manufacturers were initially passed on a temporary basis. If the Craft Beverage Modernization and Tax Reform Act is not passed, taxes will return to those higher levels, decreasing their competitiveness and raising costs for consumers.
Companion legislation was introduced in the Senate by Sens. Ron Wyden (D-OR) and Roy Blunt (R-MO). This legislation is comprehensive and supported by the entire craft beverage industry.