New York State’s Small and Independent Craft Brewers Face Increased Taxes if Rate Expires on Dec. 31

From the Brewers Association:

Rochester, N.Y. – In less than 30 days, the recalibrated Federal Excise Tax (FET) rate for 458 small and independent breweries in New York State will expire. These small businesses are asking Congress to prioritize and pass the Craft Beverage Modernization and Tax Reform Act or extend the current excise tax rates before Dec. 31. Since its enaction at the end of 2017, the reduced FET has enabled small and independent brewers across our state to re-invest in their business, hire new employees and grow their breweries.

“The Craft Beverage Modernization and Tax Reform Act has been crucial to the success of small and independent brewers in New York and needs our full support,” said Paul Leone, Executive Director of the New York State Brewers Association. “The craft beer industry has experienced sustained growth in New York and across the country and the current FET rate has gone a long way to empower our brewers to make significant investments into their businesses, adding 20,000 jobs and contributing $5.4 billion to New York State’s economy. Breweries operate in every state and nearly every congressional district in the country and if the current rate is allowed to expire, the tax increase may have a chilling effect on job creation. America’s beer industry is one of the jewels of America’s manufacturing sector-supporting more than 2.1 million jobs – 559,545 of which come from the craft industry.”

The Craft Beverage Modernization and Tax Reform Act is uniquely bipartisan legislation, with support from more than half of the U.S. Congress. Recalibrated FET rates have saved the American craft brewing industry nearly $80 million annually and helped provided certainty and stability for more than 7,500 breweries across the country including 458 in New York. If the legislation is not acted upon, not only will American and New York State brewers alike face a massive financial burden, but more than 2,000 new brewers who have only been in operation since Jan. 1, 2018 and who have never before paid the tax, will see a 100 percent tax increase.

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Founded in 2003, New York State Brewers Association (NYSBA) promotes, protects and educates about the culture and business of New York State breweries. Their goal is to defend the vital interests of the New York State brewing industry while encouraging the consumption of fresh, local beer across the Empire State. With over 400 breweries, it’s easy to Think NY, Drink NY. More information is available at https://newyorkcraftbeer.com/.

About the Brewers Association:

The Brewers Association (BA) is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts. The BA represents 4,800-plus U.S. breweries. The BA’s independent craft brewer seal is a widely adopted symbol that differentiates beers by small and independent craft brewers. The BA organizes events including the World Beer Cup^®, Great American Beer Festival^®, Craft Brewers Conference^® & BrewExpo America^®, SAVOR^™: An American Craft Beer & Food Experience, Homebrew Con^TM, National Homebrew Competition and American Craft Beer Week^®. The BA publishes The New Brewer^® magazine, and Brewers Publications^® is the leading publisher of brewing literature in the U.S. Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com^® and about homebrewing via the BA’s American Homebrewers Association^® and the free Brew Guru^® mobile app. Follow us on Facebook, Twitter and Instagram.

The Brewers Association is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital/familial status. The BA complies with provisions of Executive Order 11246 and the rules, regulations, and relevant orders of the Secretary of Labor.