Beer Institute praises new tax relief measures

The Beer Institute has praised President Trump and the U.S Congress for tax relief measures for breweries outlined in the Tax Cuts and Jobs Act.

The president and CEO of the Beer Institute Jim McGreevy said: “The Tax Cut and Jobs Act will provide critical federal excise tax relief for brewers and beer importers of all sizes and will enable America’s more than 5,000 breweries to add to the American economy through technology, innovation and jobs.”

The act has been criticised for giving big businesses tax cuts, but smaller breweries should also benefit under the new measures. Smaller US brewers currently pay US$7 tax per barrel of beer that they produce, but the tax reforms would cut this tax to $3.50 per barrel on the first 60,000 barrels produced.

Brett Joyce, president of Rogue Ales, said: “Federal excise tax relief for brewers and beer importers will help small brewers create jobs and invest more in their businesses.”

The Beer Institute estimates that the federal excise tax relief could create $320 million in economic growth per year. The beer industry currently supports more than 2.2 million American jobs.

Larger brewers will also benefit from a $2 tax cut from $18 to $16 on the first six million barrels brewed or imported.