With tax cut, craft brewers invest in themselves

In December 2017, US Congress passed legislation that includes a two-year provision of the Craft Beverage Modernisation and Tax Reform Act (CBMTRA), which lowers the federal excise tax for breweries, wineries and distillers.

The Brewers Association (BA) said that it took them nine years to see this happen. The tax relief will deliver USD 71 million collectively in annual saving, Bob Pease, the BA’s CEO, told elated delegates at the Craft Brewers Conference in Nashville.

Thanks to this unexpected golden shower, plenty of craft brewers have already embarked on spending sprees, investing in kit and new employees.

However, there is a catch. The tax break is good for only two years. It ends on 31 December 2019. There is a chance, however, that the break will be made permanent, provided craft brewers, vintners, and distillers will not relent in their lobbying efforts and will continue to flood to Capitol Hill to tell their lawmakers what’s what.