Boulder, Colorado. – The Craft Beverage Modernization and Tax Reform Act (CBMTRA) was reintroduced today in the United States House of Representatives by Representatives Ron Kind (D-WI) and Mike Kelly (R-PA) with the support of 14 original co-sponsors.
The legislation was first introduced in 2015 to recalibrate federal excise taxes and streamline regulations on liquor producers. Legislation that included a two-year provision on the wording of the CBMTRA was passed in December 2017 and is due to expire in December 2019. The current bill has been reintroduced to make the current federal excise rate wording permanent.
“The Craft Beverage Modernization and Tax Reform Act saves small brewers nearly $80 million each year after benchmarking is in place and provides our members with additional capital to invest more in their businesses. “said Bob Pease, president and CEO of the Brewers Association. . “The Brewers Association is grateful for the support of our Congressional Champions and their dedication to getting these provisions into law. Today, we are focused on working together to make them permanent, benefiting not only the brewing industry, but of the entire American economy.
Since the enactment of CBMTRA, 99% of small brewers have achieved a 50% reduction in their federal excise tax. The reinvestment of these savings has sparked a variety of economic gains in the craft brewing industry. According to a survey conducted by the Brewers Association:
- 73% of breweries buy new equipment, upgrade their tasting rooms and breweries, move to new buildings, etc.
- 53% of breweries hire new employees
- 39% are increasing their benefits by increasing wages, offering insurance and extending vacation time
- 21% are increasing their charitable contributions
- 58% do at least two of the actions mentioned above
The Brewers Association, in conjunction with a broad group of industry trade associations including the Beer Institute, WineAmerica, Wine Institute, Distilled Spirits Council, American Craft Spirits Association and US Association of Cider Makers, has had a great influence in generating widespread support for the legislation. and see CBMTRA language pass through Congress in 2017. The bill was sponsored by a majority of both houses of Congress and has been endorsed by all sectors including the National Barley Growers Association, Hop Growers of America, the National Association of Manufacturers, Canning Manufacturers Institute, Glass Packaging Institute, National Corn Growers Association and Wine Grape Growers of America. The bill was reintroduced in the Senate on February 6, 2019 by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO).
Contact: Maggie McClain (on behalf of the Brewers Association) 703-485-6551
About the Brewers Association
The Brewers Association (BA) is the nonprofit trade association dedicated to America’s small, independent brewers, their beers, and the community of brewing enthusiasts. The BA represents more than 4,800 American breweries. The BA Independent Craft Brewer Seal is a widely adopted symbol that differentiates beers from small independent craft brewers. The BA organizes events including the
beer world cup®, Great American Oktoberfest®, Craft Brewers Conference® & BrewExpo America®, FLAVOR™: An American Craft Beer and Dining Experience, Homebrew Con™, National Homebrew Competition and American Craft Beer Week®. The BA publishes The new brewer® magazines, and Brewers publications® is the leading publisher of brewing literature in the United States. Beer lovers are invited to learn more about the vibrant world of craft beer at CraftBeer.com® and on homebrewing via BAs American Homebrew Association® and free Brewing Guru® mobile app. follow us on Facebook, Twitter and instagram.
