FOR IMMEDIATE RELEASE: CONTACT: Meredith Kelly
May 10, 2013 202-224-7433
AHEAD OF CRAFT BEER WEEK, SCHUMER PUSHES FOR BILL THAT WOULD CUT EXCISE TAX ON SMALL BREWERIES ACROSS UPSTATE NEW YORK BY 50%
Schumer Legislation Would Allow Small Breweries To Fully Tap Their Business Potential By Cutting Excise Tax in Half – Craft Brew Week is May 13-19
Beer Industry Supports Nearly 60,000 Jobs In NY – Cutting Taxes On At Least 85 Small Brewing Operations Would Allow Small Breweries Across New York State To Hire More Employees, Expand Their Business
Schumer: Bill Would Help Breweries Create Jobs, Revitalize Downtown Communities
Today, ahead of Craft Beer Week, U.S. Senator Charles E. Schumer pushed bipartisan legislation that would cut the excise tax on small breweries in half, helping brewers reinvest in their business, hire new employees, and revitalize downtown communities. Currently, brewers pay a $7 excise tax for the first 60,000 barrels they brew per year. Under this bill, that rate is slashed to $3.50 per barrel, resulting in potential savings of $210,000 per year for an eligible brewery. The bill also cuts the tax by $2 on the next 1,940,000 barrels produced, resulting in potential savings of up to $3,880,000 each year. This totals over $4 million in potential annual savings for brewers that produce up to 2 million barrels per year. Allowing small breweries to reinvest in their companies is good for the surrounding communities, as many build state-of-the-art structures or renovate existing buildings, preventing blight and creating good-paying jobs.
American Craft Beer Week, May 13-19, is a weeklong celebration of America’s small and independent craft brewers and their contributions to America’s communities and our economy.
“Small breweries throughout Upstate New York not only brew great beer, they also pour jobs into communities across the country,” said Senator Schumer. “Craft breweries are the crown jewels of so many of our communities, and often set up shop in vacant buildings and warehouses and revitalize downtowns across the country. By cutting taxes for these small breweries, we can help put more money back into their businesses and brew further economic development and growth.”
Any brewery that brews fewer than 6 million barrels of beer per year is eligible for the tax cut that will allow brewers to reinvest in workers, new equipment and new space as they expand their business. This tax cut would save small brewing companies almost $17 million nationwide this year.
Senator Schumer joined Senator Ben Cardin (D-MD) and colleagues on both sides of the aisle in support of the Small BREW Act of 2013.
The approximately 2,400 small and independent breweries across the country combine to generate more than $3 billion in wages and benefits, and pay more than $2.3 billion in taxes annually. In New York, the beer industry directly supports approximately 8,000 jobs through brewing and distribution, and nearly 60,000 jobs overall when retail sales are factored in. These jobs paid $2.1 billion in wages in 2010, and accounted for $5.3 billion in economic activity. A Harvard study of the proposal predicts that passage of the proposal would increase economic activity in the small brewery sector by $153 million in the first year, and almost $865 million over the first five years. Every dollar saved by cutting the excise tax would result in nearly $11 dollars in economic activity, providing an immediate and substantial boost to the economy. According to the study, the proposal would generate over 5,200 new jobs in the first year, and an additional 400 jobs going forward annually.