Small and independent Massachusetts brewers seek tax relief, resources to survive
BOSTON, Mass. | July 14, 2020 — Led by the Brewers Association—the national not-for-profit trade association dedicated to small and independent American brewers—the annual craft brewing industry hill climb went online this year to practice advocacy at a safe social distance.
During the week of July 13, the Mass Brewers Guild and four of its members joined small and independent craft brewers from across the country to meet with members of Congress and staff and advocate for the issues that will help breweries in Massachusetts recover from the long lasting impacts of the coronavirus, such as making the existing federal excise tax (FET) rates permanent by passing the language of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), and securing additional resources to ensure that small and independent breweries weather the global health pandemic and economic crisis.
Participants shared their stories and emphasized that making the current FET rates permanent, before the savings sunset in December, will be critical to small and independent breweries as they work to recover from the impact of the coronavirus. Making the FET rates permanent will provide certainty to the more than 8,300 small and independent breweries across the U.S. and allow breweries to continue re-investing in their businesses and hiring new employees.
“The lower FET rates have benefitted small and independent brewers in all 50 states and nearly every congressional district,” said Bob Pease, president and CEO, Brewers Association. “These savings empowered brewers to reinvest in their businesses and resulted in an annual tax savings of more than $80 million.”
Brewers reinvested the additional capital by creating thousands of new jobs, buying new equipment, expanding their operations, and improving employee benefits. Thanks to the recalibrated rates, craft brewing jobs grew by 15,000 in 2018 to more than 150,000 nationally—the largest job increase on record for small brewers.
Congress overwhelmingly supports the lower FET, with more than half of Congress co-sponsoring the Craft Beverage Modernization and Tax Reform Act (S. 362/H.R. 1175), including 73 Senate and 345 House co-sponsors (as of July 9, 2020).
Hit hard by the global health pandemic and economic crisis, brewers are also urging their representatives to ensure that their small businesses have the resources they need to survive these unprecedented times. They are requesting access to grants and economic stabilization funds, as well as support of a credit for businesses like breweries to help cover the costs of perishable goods. Thousands of kegs of beer in the marketplace have expired due to the closure of breweries, restaurants, bars, and entertainment venues.