Federal Issues

CRAFT BEVERAGE MODERNIZATION AND TAX REFORM ACT

FEDERAL EXCISE TAX OVERVIEW
Excise Tax Bills
S. 1562 H.R. 2903
Craft Beverage Modernization and Tax Reform Act of 2015
The Craft Beverage Modernization and Tax Reform Act (S. 1562) was introduced in the Senate by Sen. Ron Wyden (D-OR), the Ranking Democrat on the Senate Finance Committee on June 11, 2015. Sen. Blunt (R-MO) is the lead Republican on this bill, and along with Sen. Baldwin (D-WI), is the lead on the “Fair Beer Act.” Sen. Wyden is a strong supporter of the Small BREW Act.

The companion bill in the House (H.R. 2903) was introduced on July 8, by Reps. Erik Paulsen (R-MN) and Ron Kind (D-WI). Paulsen is the lead sponsor of the Small BREW Act in the House, and Kind is the lead democratic sponsor of the Fair Beer Act. The full list of sponsors can be found on BrewersAssociation.org.

Pairing strong supporters of the Small BREW Act and Fair Beer Act was deliberate, so as to demonstrate the consensus nature of the Craft Beverage Modernization and Tax Reform Act.

This legislation not only is supported by the broad spectrum of the beer industry (the Brewers Association, Beer Institute support and National Beer Wholesalers Association), but also vintners (Wine America and the Wine Institute) and distillers (American Craft Distillers Association and DISCUS) as well as related industries like the National Barley Growers Association and the Hop Growers of America. The intent of the bill is to update and modernize the excise tax and regulatory requirements for craft brewers as well as vintners and distillers, and thereby help to ensure the continued growth of America’s craft beverage industries. This legislation is tailored to promote job creation in each industry. Among other things, the bill would:

Reduce excise tax and regulatory burdens for brewers
Reduce compliance and tax burdens for all producers
Improve excise tax enforcement and administration