An article from The Brewers Association/ 13 July 2020 by: Ann Obenchain. We feel it is worth the read and understanding the issues due to shut-down.
Small and independent brewers seek tax relief, resources to survive
Boulder, Colo • July 13, 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 is going online this year to practice advocacy at a safe social distance.
During the week of July 13, small and independent craft brewers and state brewers guilds from 47 states will hold online meetings with members of Congress and staff to advocate for the issues that will help breweries recover from the impacts of the coronavirus, including making the existing federal excise tax rates permanent by passing the language of the Craft Beverage Modernization and Tax Reform Act, and securing additional resources to ensure that small and independent breweries can weather the global health pandemic and economic crisis.
Participants will share their stories and emphasize that making the current federal excise tax (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 them to continue reinvesting in their businesses and hire 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 rates, with more than half of its members 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 10 2020).
Hit hard by the global health pandemic and economic crisis, brewers are also urging their representatives to ensure that their small businesses are supported in the next coronavirus relief package so they have the resources needed to survive these unprecedented times.