BOSTON, MA • Dec. 5, 2019 – In less than 30 days, the recalibrated Federal Excise Tax (FET) rate for 200 small and independent breweries in Massachusetts will expire. These small businesses are asking Congress to prioritize and pass the Craft Beverage Modernization and Tax Reform Act or extend the current exise tax rates before Dec. 31. Since its enaction at the end of 2017, the reduced FET has enabled small and independent brewers across our state to re-invest in their business, hire new employees and grow their breweries.
“The Craft Beverage Modernization and Tax Reform Act has been crucial to the success of small and independent brewers in Massachusetts and needs our full support,” said Katie Stinchon, executive director of the Mass Brewers Guild. “The craft beer industry has experienced sustained growth in Massachusetts and across the country and the current FET rate has gone a long way to empower our brewers to make significant investments into their businesses.”
Breweries operate in every state and nearly every congressional district in the country and if the current rate is allowed to expire, the tax increase may have a chilling effect on job creation. America’s beer industry is one of the jewels of America’s manufacturing sector—supporting more than 2.1 million jobs – 559,545 of which come from the craft industry.
The Craft Beverage Modernization and Tax Reform Act is uniquely bipartisan legislation, with support from more than half of the U.S. Congress. Recalibrated FET rates have saved the American craft brewing industry nearly $80 million annually and helped provided certainty and stability for more than 7,500 breweries across the country including 200 in Massachusetts. If the legislation is not acted upon, not only will American and Massachusetts brewers alike face a massive financial burden, but more than 2,000 new brewers who have only been in operation since Jan. 1, 2018 and who have never before paid the tax, will see a 100 percent tax increase.
About the Massachusetts Brewers Guild
Founded in 2007 by a group of committed and passionate brewers, the Mass Brewers Guild, is organized for the purposes of promoting craft brewing and protecting the interests of craft brewers across the Commonwealth. The association is membership based and open to all Massachusetts breweries licensed by the federal Tax and Trade Bureau and the Commonwealth’s Alcoholic Beverages Control Commission. The nonprofit creates a community of brewers while shining light on the broad range of breweries and styles offered throughout state. Through industry and educational events, its mobile application beer trail map, and by providing resources and marketing support to brewers, the nonprofit works to highlight Massachusetts as a top travel destination for craft beer in the U.S. The board also continues its work at the legislative level, fighting for license and franchise law reform, and serving as the voice of craft brewers on Beacon Hill. The Massachusetts Brewers Guild is a 501(c)6 not-for-profit corporation.
About the Brewers Association
The Brewers Association (BA) is the not-for-profit trade association dedicated to small and independent American brewers, their beers and the community of brewing enthusiasts. The BA represents 4,800-plus U.S. breweries. The BA’s independent craft brewer seal is a widely adopted symbol that differentiates beers by small and independent craft brewers. The BA organizes events including the World Beer Cup®, Great American Beer Festival®, Craft Brewers Conference® & BrewExpo America®, SAVOR™: An American Craft Beer & Food Experience, Homebrew ConTM, National Homebrew Competition and American Craft Beer Week®. The BA publishes The New Brewer® magazine, and Brewers Publications® is the leading publisher of brewing literature in the U.S. Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com® and about homebrewing via the BA’s American Homebrewers Association® and the free Brew Guru® mobile app. Follow us on Facebook, Twitter and Instagram.
The Brewers Association is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital/familial status. The BA complies with provisions of Executive Order 11246 and the rules, regulations, and relevant orders of the Secretary of Labor.
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