Rep. Erik Paulsen (R-MN) applauded the inclusion of legislation in the recently approved Tax Cuts and Jobs Act that will help craft brewers.
Paulsen’s bill, the Craft Beverage Modernization and Tax Reform Act, modernizes the tax code and streamlines regulations for producers of craft brews. Specifically, it simplifies beer formulation approvals, beer recordkeeping and inventory rules, allows for the transfer of beer in bond to breweries, and ensures proper funding for the Alcohol and Tobacco Tax and Trade Bureau (TTB).
The bill, co-sponsored by Rep. Ron Kind (D-WI), was passed as part of the tax reform plan that Congress approved in December.
“Six thousand breweries across the country—98 percent of which are small or independent—will no longer be burdened by out-of-date regulations and high excise taxes,” Paulsen said. “Now, they can focus on growing their business and the local economy by expanding, creating more jobs, and fostering a sense of community.”
Small brewers are playing an increasingly important economic role as breweries are popping up all over the country. About 83 percent of Americans live within 10 miles of a brewery, Paulsen said, who serves on the House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.