US Congress extends brewers’ tax relief for one year
USA | The Brewers Association (BA) has expressed its gratitude to the 116th Congress for extending the current Federal Excise Tax (FET) rates for breweries and beer importers for one year (2020).
President Trump’s two-year long tax relief for brewers, issued in 2017, was to expire on 1 January 2020 unless Congress acted by 31 December 2019.
At the last minute, on 20 December 2019, congressional leaders extended the relief for another year, thus acknowledging the profound impact the reduced excise tax rate has had on the growth of a uniquely American industry, the BA said.
Tax savings ploughed back into businesses
“The lower FET rates have been a boon to small and independent brewers located in all 50 states and nearly every congressional district,” said Bob Pease, President and CEO of the BA. “These savings empowered brewers to reinvest in their businesses and resulted in an annual tax savings of more than USD 80 million.”
He added: “Brewers reinvested the additional capital by creating thousands of new jobs, buying new equipment, expanding their operations, and improving employee benefits. Thanks to the recalibrated rates, craft brewing jobs grew by 15,000 in 2018 to more than 150,000 nationally – the largest job increase on record for small brewers.”
