Under the proposed Craft Modernization Act, breweries producing less than 2 million barrels annually will enjoy significant tax savings. The federal excise tax rate on a brewer’s first 60,000 barrels (annually) would be cut in half, from $7 per barrel to $3.50. This will allow small producers to be more competitive.
The Fair BEER Act, extends cuts to large domestic brewers and importers. Any domestic brewery that produces in excess of 2 million barrels to pay a decreased $16 per barrel rate on its first 6 million barrels, down from $18. Importers would pay $16 on their first 6 million barrels and $18 for every subsequent barrel.
Proponents claim that cutting taxes would enable companies to create jobs and reinvest in their businesses. With new small businesses popping up across New York and the entire nation, the craft alcoholic beverage industry is fueling much of the economy already. These tax reductions would keep the momentum going for several years.
With the state laws benefiting farm alcoholic beverage producers, these federal laws will enhance New York’s agricultural businesses as well. More demand for New York ingredients will provide a ready market and demand for agricultural products, making small scale farming an economically viable business again. In the past decade, farming has become a national large company business. Family farms have struggled to make a living in this risky industry.
Proactive legislation and economic development efforts across New York have proven successful. One only has to look at the success of the dairy industry with the New York yogurt and cheese industry growth. The infancy of the New York hops industry is showing similar promise.
Contact your federal legislators and urge them to support this legislation. This is good for New York.