Tax Breaks on Horizon for Small Breweries in USA

October 6, 2016 Taxation in USA

Excise taxes on beer in the USAWASHINGTON D.C. – Small breweries in the USA may soon see eased filing and tax requirements, as a new Act receives majority support in Senate.

According to information in a press release issued on September 26th by the US advocacy group the Beer Institute, a majority of Senators in the USA now support an Act to ease the tax burdens faced by small and independent breweries across the country.

The Act proposes to reduce the federal excise tax on beer to USD 3.50 per barrel for the first 60 000 barrels produced by any domestic brewery producing less than 2 million barrels of beer per year.

The reforms would also extend to larger breweries, with the federal excise tax also being lowered to USD 16 per barrel for brewers and importers dealing with up to 6 million barrels per year.
Producer who make more than 6 million barrels would face a per-barrel rate of USD 18.

The Act also aims to ease the administrative requirements for small brewers by reducing the filing requirements for breweries who are eligible to pay less than USD 50 000 per year in federal excise tax, and by expanding the list of ingredients which can be included in a beer without prior approval from the federal government.