This bill would change the tax code to lower the amount of excise tax levied on small breweries. How small is small? Any brewer producing less than 6,000,000 barrels of beer in a calendar year.
According to the Brewer's Association, the 6,000,000 barrels per year cut off makes this bill apply exclusively to "craft breweries." And at 31 gallons to the barrel, this quantity of beer encompasses a huge swath of U.S. based breweries.
Current law taxes small brewers at a level of $7 per barrel for the first 60,000 barrels, and $18 per barrel beyond that.
This legislation would change the excise tax per barrel to $3.50 on each of the first 60,000 barrels. On the first 1,940,000 barrels of production (excluding the first 60,000), the tax rate per barrel would be lowered to $16.