Reps. Kelly and Kind re-introduce Craft Beverage Modernization and Tax Reform Act

Feb 13, 2019 Issues: Tax Reform

WASHINGTON – Today, Representative Mike Kelly (R-PA) and Representative Ron Kind (D-WI) introduced the Craft Beverage Modernization and Tax Reform Act along with several of their colleaguesSimilar legislation, S. 362, was introduced in the Senate by Senators Ron Wyden (D-OR) and Roy Blunt (R-MO). Kelly is co-chair of the House Small Brewers Caucus with Representative Peter DeFazio (D-OR).

The bill would make permanent the Tax Cuts and Jobs Act’s (TCJA) excise tax reduction on breweries, wineries, and distilled spirits producers. TCJA, a landmark tax reform bill passed during the 115th Congress, has led to unprecedent economic growth and job creation. This legislation will build on the success of TCJA by ensuring these small businesses can continue growing, hiring, and producing American made products.

Pennsylvania has a long history in the craft beverage industry, particularly in the production of beer, said Kelly. The Commonwealth produces more barrels of beer than any other state. These small businesses throughout America exemplify the American dream and our country’s spirit of entrepreneurship. The Tax Cuts and Jobs Act gave them much needed relief from our previously burdensome tax code. When I toured many of our local breweries last year, I saw first-hand the how these small businesses are using their tax savings to upgrade their equipment and hire additional staff. The bipartisan Craft Beverage Modernization and Tax Reform Act will ensure these pillars of our local communities continue to benefit from tax reform.

This bill has wide bipartisan and bicameral support. During the 115th Congress, it had 303 co-sponsors, signaling strong potential for passage in the House and Senate during the 116th Congress.

Bob Pease, President and CEO, Brewers Association: Today there are small and independent brewers in all 50 states, and 282 in Pennsylvania alone.  The Craft Beverage Modernization and Tax Reform Act saves this rising industry significant money each year the calibration is in place and provides these integral small businesses with additional capital enabling them to further invest and grow. The Brewers Association greatly appreciates the support from our champions in Congress, including Rep. Kelly, who along with Rep. Ron Kind, is leading the charge and reintroducing this important legislation today.