Tastes Great. Less Taxes

Ecstatic' Local Brewers On Tax Reform Savings: 'It's Hard To Overstate How Dramatic This Is To Us,' 'This Act Went Straight To Our Staff'
"Toasting the nation's booming economy, alcoholic-beverage producers — from craft beer brewers to large whiskey distilleries — are taking advantage of a big tax cut. The federal excise tax on spirits, wine and beer has been slashed through 2019 under the Craft Beverage Modernization and Tax Reform Act, which supporters say will allow owners to pour those savings back into their businesses…. The biggest benefits go to small producers." ("Craft Beer, Whiskey Producers Hail Giant Excise Tax Cut," USA Today, 2/19/2018)

• "[T]he 115th United States Congress passed H.R.1, the Tax Cuts and Jobs Act. Included in this legislation is the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which lowers the federal excise tax for breweries, wineries and distilled spirits producers." (Bob Pease, "Congress Passes the Craft Beverage Modernization and Tax Reform Act," Brewers Association Website, 12/20/2017)
• "'This is an economic incentive for distilleries to increase production, add more people and buy more supplies,' said Will Cheek, an alcoholic beverage law attorney and partner at Waller Law…. The Brewers Association projects the reduced excise taxes will save the U.S. beer industry $142 million annually." ("Craft Beer, Whiskey Producers Hail Giant Excise Tax Cut," USA Today, 2/19/2018)

'Craft Brewers Putting Tax Savings Toward Expansions And New Jobs': 'We Hope To Expand With This Money,' 'We Invest Where We Live And Work'
MONTANA: "Sen. Steve Daines, R-Mont., spent Tuesday and Wednesday touring breweries and other small businesses across the state in an effort to tout the federal tax reform bill, called the Tax Cuts and Jobs Act, which was passed by Congress and signed into law in December. Part of that legislation was the Craft Beverage Modernization and Tax Reform Act, which was cosponsored by Daines …" ("Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill," Missoulian, 2/21/2018)

• SEN. STEVE DAINES (R-MT): "So the excise tax fell by 50 percent, combined with the rate cuts for small businesses, and just chatting with folks here at Big Sky it's a significant six-figure kind of savings for them, a few hundred thousand dollars a year. I asked them, well, what are you going to do with that? They said, well, two things: Continue to invest in our equipment and (our) employees, specifically higher bonuses for employees." ("Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill," Missoulian, 2/21/2018)

"There are 73 breweries in Montana, with 12 more set to open this year, and that means beer is not only popular for consumers here but is an important component of the Treasure State's manufacturing industry." ("Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill," Missoulian, 2/21/2018)

• "Maddie Mason, a sales representative for Philipsburg Brewing, said the brewery expects to produce 5,000 barrels this year and they are growing. 'We will probably save $15,000 due to the new tax bill,' she said. 'That's not a full-time staff person, but it definitely helps ease some of the payments we have on equipment and so forth. So we'll use the money probably for a combination of raises for the staff as well as some of the equipment we're investing in.'" ("Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill," Missoulian, 2/21/2018)
• "Nolan Smith, the president of the Montana Brewers Association, pointed out that what's good for breweries is good for Montana farmers. 'This reduction in taxes will allow Montana brewers to invest in their businesses thus creating more craft brewing jobs and supporting Montana hops and barley growers,' he said in a statement." ("Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill," Missoulian, 2/21/2018)

OHIO: "The brewers are feeling good about a new cut in the federal excise tax that was sponsored by Senator Rob Portman of Ohio. For small brewers the tax is cut in half from $7 a barrel to $3.50. [Ohio Craft Brewers] Association spokesman Justin Hemminger said that's a boon to these small businesses. 'Even just a few thousand dollars can mean the difference between whether or not you have the flexibility to make a capital improvement you've been looking to do for a while, hire a new staff,' Hemminger said. 'It's absolutely essential to the bottom line of these breweries.' For Columbus brewer Larry Horwitz, that means hiring more people." ("Business Hopping For Ohio Craft Brewers," Ideastream, 1/31/2018)

"While craft brewers will have lighter tax bills this year, that savings won't be hoarded away – it's being put to work. Members of the Ohio Craft Brewers Association met with Sen. Rob Portman, R-Ohio, on Friday to discuss how they're reinvesting in their businesses and people while also pushing to make permanent recent tax changes …" ("Craft Brewers Putting Tax Savings Toward Expansions And New Jobs," Columbus Business First, 2/27/2018)

• "To a person, each of the nine brewery representatives shared stories of business growth. Larry Horwitz, co-owner and brewmaster at Four String Brewing Co., said his business expects to save about $40,000 this year because of the tax change. 'We invest where we live and work,' he said. 'We are the blue collar workers in the neighborhood.' The company has 42 employees, up from two at its start in 2012. 'It's hard to overstate how dramatic this is to us,' said Bill Boor, CEO of Cleveland's Great Lakes Brewing Co. 'This really moves the needle.' One goal there is to raise wages." ("Craft Brewers Putting Tax Savings Toward Expansions And New Jobs," Columbus Business First, 2/27/2018)
• "The meeting was held at Seventh Son Brewing Co., a timely visual representation of what's happening in the industry. Seventh Son is in the midst of an expansion that will greatly increase the size and production capabilities at … brewery in Italian Village. That means jobs beyond the brewery. 'Our bricks are from Hamilton Parker,' said co-owner Collin Castore. 'These are Columbus crews, Columbus-based, Columbus jobs.' He said they will be adding staff with the tax savings." ("Craft Brewers Putting Tax Savings Toward Expansions And New Jobs," Columbus Business First, 2/27/2018)
• "Columbus Brewing Co. expanded to its production facility in 2016 and employment has grown from nine to 25. 'Each year, we look at what we can add,' said co-owner Eric Bean. 'This act went straight to our staff.' The company added IRAs with a company match and instituted a profit-sharing program, among other benefits in recent years." ("Craft Brewers Putting Tax Savings Toward Expansions And New Jobs," Columbus Business First, 2/27/2018)

TENNESSEE: "Kris Tatum, president of the Tennessee Distillers Guild and partner/general manager at Old Forge Distillery in Pigeon Forge, said members of the guild are 'ecstatic' to save money on taxes and reinvest in their businesses. He said the East Tennessee distillery he manages plans to use the savings to upgrade equipment and potentially add another staff member to help with a new line of spirits. 'This benefits everyone in the industry. That's what I think is huge,' Tatum said." ("Craft Beer, Whiskey Producers Hail Giant Excise Tax Cut," USA Today, 2/19/2018)

IOWA: "Federal officials gave Iowa breweries something to toast. The 'Craft Beverage Modernization and Tax Reform Act,' part of the president's federal tax reform initiative, allows for a significant decrease in the taxes paid by breweries…. Local brewers, West O Beer of West Okoboji and Okoboji Brewing Company of Spirit Lake are celebrating the tax cuts. Both businesses said the savings will allow them to purchase new equipment and potentially hire new employees.'" ("Tax Cuts Carve Niche For Local Breweries," The [Spencer, IA] Daily Reporter, 2/04/2018)

• "'I am very excited,' West O Beer owner Matt Matthiesen said. 'The Iowa Brewers Guild has been lobbying for that and other things. We have been in full support. As a small local business, those breaks help us tremendously….'" ("Tax Cuts Carve Niche For Local Breweries," The [Spencer, IA] Daily Reporter, 2/04/2018)
• "'It has given us a little more optimism that we can increase production,' Okoboji Brewing Company owner Donn Martens said. 'We hope to expand with this money. We would like to double our production. We are working on a pretty small system, which has its limitations. If we can increase our distribution, that is one of our goals.'" ("Tax Cuts Carve Niche For Local Breweries," The [Spencer, IA] Daily Reporter, 2/04/2018)
  

MAINE: "Tucked inside the recently passed federal tax overhaul was a very specific tax cut that could cumulatively save Maine breweries about $1 million this year…. Brandon Mazer, Shipyard's general counsel and the president of the Maine Brewers' Guild, said he was thrilled to see the changes come about after years of lobbying at the national level. While not every brewery will benefit equally, he said, they will all see a benefit.… 'But again, that's money that if they spend it on a holiday party or invest in a (fermentation) tank or put it in a bonus for their employees or put it toward research and development, it's all going back into, one way or another, the brewing industry.'" ("Maine Brewers Stand To Save About $1 Million From Less Tax Per Barrel," Portland Press Herald, 1/09/2018)

• "[T]he immediate impact for brewers will be more money in their bank accounts. Breweries pay excise taxes throughout the year, on varying schedules, so they should start to see the effects right away, said Tina Bonney, who has an economics degree and is co-owner of Portland's Foundation Brewing. 'This is money in your pocket right away,' Bonney said, noting brewery owners will likely invest in equipment and upgraded cans. 'It will help with those kinds of cash flow purchases.'" ("Maine Brewers Stand To Save About $1 Million From Less Tax Per Barrel," Portland Press Herald, 1/09/2018)
• "Foundation, a medium-sized company, could save more than $20,000 on excise taxes, said Bonney…. Bonney also said the savings will make it easier to offer her employees a new 401(k) benefit." ("Maine Brewers Stand To Save About $1 Million From Less Tax Per Barrel," Portland Press Herald, 1/09/2018)
• "Across town at Shipyard, Mazer expects the savings will likely go into research and development, better equipment and employee benefits." ("Maine Brewers Stand To Save About $1 Million From Less Tax Per Barrel," Portland Press Herald, 1/09/2018)

NORTH CAROLINA: "U.S. Rep. Patrick McHenry sipped a brown ale Friday afternoon while listening to Scott Cavendish explain the ins and outs of his Gastonia brewery's operations. But the Gastonia Republican didn't stop by Cavendish Brewing Co. just to drink craft beer. He wanted to talk about taxes. McHenry was one of the members of Congress who worked tax breaks for brewers into the … Tax Cuts and Jobs Bill Act that was signed into law late last year, and he wanted to hear how it was working out for Cavendish." ("Congressman Checks Up On Beer Tax Breaks In Gastonia," Gaston [County, NC] Gazette, 2/23/2018)

• "For the brewery, which has 11 employees and produced about 500 barrels of beer since it opened nearly a year ago, that means a roughly 50 percent drop in excise tax per barrel…. Cavendish said. 'I could buy another keg a month. Every little bit helps.'" ("Congressman Checks Up On Beer Tax Breaks In Gastonia," Gaston [County, NC] Gazette, 2/23/2018)

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