Posted On May 30, 2014
(U.S. SENATE) – Senator John Walsh today sponsored legislation to reduce taxes for Montana brewers, building on his work to support one of Montana’s growing industries and help create good-paying jobs in Montana.
“Montana’s industry of brewers and distillers contribute to our local economies, strengthen our state and create good-paying jobs – it’s our job to help them thrive,” Walsh said. “Cutting taxes brewers and distillers pay will reduce their overhead so they can return the investment in their businesses, grow their operation and add unbeatable Made in Montana products to shelves across the state and country.”
The bipartisan BEER Act will halve the excise tax on all beer from $18 a barrel to $9 – approximately 2.5 cents per can, down from five cents – and lower rates for small brewers from $7 to $3.50 or less. All Montana brewers would benefit from this adjustment.
The bipartisan Small BREW Act is targeted specifically to lowering the excise tax for smaller brewers. It would halve the excise tax on the first 60,000 barrels of beer produced by small brewers from $7 to $3.50, and it would give a $2 break for small breweries for every barrel they produce between 60,000 and 2 million.
With 46 breweries, and at least six more expected to open later this year, Montana has the third-highest number of small breweries per capita in the nation. Brewers use over 6 million pounds of malted grain, much of which is grown in Montana. The breweries employ more than 500 Montanans. In 2013 alone, craft beer production increased 15% in Montana in 2013.
Senator Jon Tester is a cosponsor of the BEER Act and the Small BREW Act.
Montana is also home to a burgeoning distillery industry. Last month, Walsh announced the creation of the Small Distillers Caucus at Headframe Spirits in his hometown of Butte, where he heard from owner Jeff McKee about the amount of taxes his business paid – often at the expense of covering other costs. Walsh supports the Distillery Excise Tax Reform Act to reduce the excise rate for distilled spirits to only $2.70 for the first 100,000 proof gallons produced. Every gallon above 100,000 would continue to be taxed at the rate under current law of $13.50 per proof gallon. Montana currently has 16 distilleries in operation and they would all benefit from a reduction in the excise tax.
Here is what Montanans are saying about Walsh’s support for lowering taxes on distillers and brewers:
“Microbreweries and distilleries represent a fast-growing segment of the Montana economy that not only support a renewal of domestic manufacturing, but also Montana’s agriculture by increasing demand for locally-grown ingredients. A reduction in the tax burden faced by small breweries and distilleries will help these businesses grow. We applaud Sen. Walsh’s continued support of Montana-based small business and agriculture.”
– Matt Muth and Phil Sullivan, 406 Brewing Company and WildRye Distilling, Bozeman
“Beer plays a big part in Montana’s agricultural economy. Both large and small U.S. brewers benefit from Montana grown barley. We applaud Senator Walsh for cosponsoring the Small Brew Act because it will help us keep more dollars in Missoula’s economy.”
– Tim O’Leary, Kettlehouse Brewing Company, Missoula
“The Small BREW Act is a great bill for the Montana craft beer industry and it is a great bill for each community in the state that is home to a local brewery. By the end of this year, Blackfoot River Brewing Company will have been in business for sixteen years and in that time we will have paid a quarter of a million dollars in federal beer excise tax. At Blackfoot River Brewing Company we take great pride in being an active part of our community. I appreciate Senator Walsh’s support for the Small BREW Act that will allow us to spend more money in our community instead of sending it to Washington D.C.”
– Brad Simshaw, Blackfoot River Brewing Company, Helena