Rep. Neal announces craft beer tax bill

GREAT BARRINGTON – They will drink to that.

Eleven small brewers from around the state recently joined U.S. Representative Richard Neal at Barrington Brewery to support legislation to lower taxes on small breweries.

The bipartisan bill, known as the Small Brewer Reinvestment and Expanding Workforce Act, has been proposed in past congressional sessions, but Rep. Neal is again hoping to get the needed votes.

“We’ve done better in each succeeding Congress,” said Rep. Neal. “I am hopeful we will get some traction in Congress this time.”

Currently, small breweries that produce less than two million barrels a year pay a $7 excise tax for each of its first 60,000 barrels of beer produced, and the new law would lower that to $3.50.

Currently breweries then pay $18 per barrel in excise tax on each additional barrel, and the new bill would lower that to $16.

The bill also proposes raising the ceiling to qualify for the small brewer rates from two million barrels to six million barrels.

Rep. Neal also explained he felt the bill would be great for local economies.

“These brewers are truly small, local manufacturing; they provide good jobs and a great locally made product,” said Rep. Neal.

There are currently over 40 craft brewers in the state, including several here in Berkshire County.

The bill has gained wide support from craft brewers in Massachusetts, including Jim Koch, the founder of the Boston Beer Co., makers of Sam Adams.

“Congressman Neal, more than anybody else in Congress, has stepped up to champion the growth and the success of small brewers in Massachusetts,” said Mr. Koch. “Small brewers in America have no better friend and champion than Richard Neal.”

Rob Martin, president of the Massachusetts Brewers Guild and the owner of Ipswitch Ale Brewery, explained the craft beer market works on tight budgets to make their products.

“We work on very low margins but we work on very high passion,” said Mr. Martin. “Our industry treats our employees well.”

Jeremy Goldberg, owner of Cape Ann Brewing, explained, with tax relief, smaller brewers across the state could keep growing.

“All of this money could go right into the company,” said Mr. Goldberg. “New equipment, more employees and in the end, more great beer.”

Rep. Neal will introduce the act in Congress alongside Pennsylvania congressman and co-author Rep. Jim Gerlach in February.

Posted by Kameron Z. Spaulding on January 31, 2013. Filed under National News,News,State News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry