Senators Shaheen, Hassan and Bipartisan Group of Colleagues Push to Include Tax Relief Measure for Craft Breweries in End-of-Year Package
WASHINGTON – U.S. Senators Jeanne Shaheen (D-NH) and Senator Maggie Hassan (D-NH) – a member of the Senate Finance Committee –are leading a push with a bipartisan group of lawmakers to include a proposal to provide tax relief for craft breweries in an end-of-year legislative package.
The bipartisan Craft Beverage Modernization and Tax Reform Act, cosponsored by Senators Shaheen and Hassan, would permanently extend the reduction in excise taxes for craft breweries, while also cutting red tape and streamlining outdated, burdensome federal regulations that hold businesses back. Senator Hassan successfully worked to extend the current tax cuts in last year’s bipartisan government funding bill.
“Every state in our nation is proudly home to craft distillers, brewers, wineries, cideries, and meaderies who without Congressional action, face a significant increase in their federal excise taxes on January 1, 2021,” the Senators wrote.
The Senators continued, “[W]ith the economic duress brought on by the COVID-19 pandemic, producers’ businesses have been devastated, which would be compounded by an increase in their federal excise taxes…It is imperative that the Craft Beverage Modernization and Tax Reform Act be included in the next appropriate legislative package and acted upon before the end of the year. As businesses struggle to retain workers and stay open, allowing the current rates to lapse would force many businesses across the country to lay off workers or close their doors permanently.”
Full text of the letter can be found below:
Dear Majority Leader McConnell and Minority Leader Schumer:
We are writing today to ask you to pass the Craft Beverage Modernization and Tax Reform Act (S. 362/H.R. 1175) and make the existing federal excise tax rates for beverage alcohol producers permanent.
Every state in our nation is proudly home to craft distillers, brewers, wineries, cideries, and meaderies who without Congressional action, face a significant increase in their federal excise taxes on January 1, 2021.
In addition to creating jobs in every state and Congressional district, beverage alcohol producers are critical partners to our farmers and agriculture producers, the tourism industry, the manufacturing sector, and the hospitality industry, including restaurants, bars, and other on-premise establishments. Together, these producers support over four million jobs across the country and contribute immensely to the vibrancy of our economy and communities.
However, with the economic duress brought on by the COVID-19 pandemic, producers’ businesses have been devastated which would be compounded by an increase in their federal excise taxes. Producers have already seen dramatic declines in revenue because of the closures of tasting rooms and restaurants, bars, and other on-premise establishments and cancelations of major sporting events and concerts. These losses ripple throughout the supply chain, affecting farmers, agriculture producers, manufacturers, truck drivers, warehouse workers, and countless others.
It is imperative that the Craft Beverage Modernization and Tax Reform Act be included in the next appropriate legislative package and acted upon before the end of the year. As businesses struggle to retain workers and stay open, allowing the current rates to lapse would force many businesses across the country to lay off workers or close their doors permanently. With the support of 77 Senators and 351 Representatives, this bill is a bipartisan priority and an important economic lifeline to thousands of businesses across the country.
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