Give all brewers a break

03/17/2014 9:03 AM

03/17/2014 9:26 AM

Your coverage of the growth of new breweries highlights a compelling story of American ingenuity and entrepreneurship, but it's only half of the story. The other half is a story about how a little-known but well-established tax credit has worked for small brewers.

Under the existing tax structure, small brewers, who produce fewer than 2 million barrels per year, receive a substantial break on federal excise tax, paying $7 per barrel on the first 60,000 barrels. Everyone else pays $18 per barrel.

We support the small brewer tax credit, but need to prevent beer taxes from going up for everyone.

The bipartisan Brewers Excise and Economic Relief Act of 2013 is fair, equitable and comprehensive, covering all brewers. The bill would allow for greater investment in this industry, which contributed $34.2 billion to California in 2012. That’s something to which we can all raise a glass.

-- Chris Thorne, Beer Institute, Washington, D.C.

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