Walsh sponsors legislation to cut taxes for Montana brewers and distillers

Posted On May 30, 2014

Measures would help reduce overhead so small businesses can grow and create more jobs

(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

April Newsletter: MBA Spring Festival, New Breweries & New Associate Members

Posted On April 21, 2014

Billings Spring Brewfest April 25th in Metra Park

Montana Brewers Spring Festival

April 25th 2014 – MetraPark, Billings MT

Join 22 Montana Brewers Association craft breweries to enjoy 71 of their Montana-made beers! Live music from The Growlers & Cure for the Common. Your ticket price includes a 9oz commemorative glass with unlimited samples of Montana beer. Food from our friends at Fat Taco, Jimmy’s Greece Pit, Cajun Phatty’s and Taste of Asia.

VIP Tickets-4pm Entry & Meet the Brewers:
$30 in advance/$35 at the gate

General Admission 5pm:
$20 in advance/$25 at the gate

Get Your Tickets Now! 

Please Welcome  Our New Breweries

• Ice Bridge Brewing (Missoula, MT)
• Muddy Creek Brewery (Butte, MT)
• Meadowlark Brewing Co. (Sidney, MT)
• One Nation Brewing (Missoula, MT)

Thank You to our New Associate Members

• K & N Electric
• Montana Brewery Tours
• Saxco International
• Spokes Mobile Canning

Mark Your Calendars

• American Craft Beer Week – May 12 – 18
• Missoula Craft Beer Week – April 27 – May 3

Cheers to our Newest Members

Posted On March 30, 2014

Raise Your Glasses in Thanks!

March 2014,

Please Welcome Our New Breweries:

• Beaverhead Brewing Co. (Dillon, Montana)
• Cabinet Mountain Brewing (Libby, Montana)
• Katabatic Brewing Co. (Livingston, Montana)
• Triple Dog Brewing Co. (Havre, Montana)

Raise Your Glass to our New Associate Members

• Ennis Chamber of Commerce
• Sysco Montana
• Ripley Stainless Ltd.
• Madison Foods & Smokehouse
• G & D Chillers
• Madhatter’s Resturant, Bar & Casino

2013 Brewers Recap

Posted On January 28, 2014

2013 was a very active year for the Montana Brewers, to say the least. We have experienced remarkable growth once again as several new breweries hit the scene and joined the association.

In January the Montana Brewers Association published our first ever Montana Brewers Economic Study. Developed by the University of Montana’s Bureau of Business and Economic Research, this study identified that our industry is growing with double digit numbers, and now is a $50 million dollar industry impacting over 450 Montana jobs. We will be commissioning a new study to be completed in 2014.

The year began with a big boom when the Montana Tavern Association introduced a bill that would have decimated the brewing industry, attempting to limit on-premise sales to just 10% of brewery production. We were successful in killing that bill, only to find another introduced which sought to limit on-premise sales to 40% and hinder entry into the Montana brewery industry. With the help of craft beer lovers throughout the state, and some hard work by several legislators, we defeated this bill as the session came towards its close. A veritable sigh of relief was heard all across Montana when HB616 took its last breath. Though our Joint Resolution, HJR 18, to study these issues in the interim and develop real and lasting solutions received a 19 to 0 vote in the House Business Committee, it died on the House Floor in a 50 to 50 vote.

Following the 2013 Legislature were several months of thrilling activities working with new breweries (now 35) and Associate Members (now 63), as well as hosting four great events for craft beer lovers and brewers in Montana:

• The 2013 Spring Brewers Festival in Billings on May 31 at the Billings Depot– At our first Spring Festival, 1,200 people joined 23 brewers with 76 beers to make this the largest collection of Montana brewed beer to date, along with great music and food.
• The Cruise With Charlie on Flathead Lake on August 10 – 125 lucky people cruised the lake with Charlie Papazian, president of the national Brewers Association and author of the bible of home brewing “The Complete Joy of Home Brewing”.
• The 5th Annual Montana Brewers Fall Festival in Missoula on September 28 – 2,400 people joined us at Caras Park along the Clark Fork River and included 25 Montana brewers hosting 87 beers including 21 Festival Special Release Beers! With 87 beers, we hosted the largest ever collection of Montana made beer on display! Next year (mark your calendars -Oct 11, 2014) we hope to go over 100!
• The 2nd Annual Montana Brewers Conference in Missoula on September 29 and 30– This 2-day technical conference was a big success for our industry where we assembled to strategize and discuss brewing techniques and policies. Over 110 brewers and staff attended with 21 sponsoring companies.

In the midst of this busy summer and fall we also coordinated a Montana Craft Brewers Industry Review at the Baucus Economic Summit in Butte in mid-September. This panel was moderated by Charlie Papazian (that’s twice visiting Montana within a month), and included a panel of 3 breweries (Big Sky, Lewis and Clark, and Beaver Creek), Cardinal Distributing, and a Malteurop representative regarding the economic impact of the craft brewing industry in the state.

The Montana Brewers Association also engaged in its first ever strategic planning effort. This process identified key areas of focus for the association for 2014 and 2015 to support its members.

2014 looks to be another active year.

Here’s a sneak preview:

We have called together industry partners in an effort to proactively use the legislative interim on brewery-related policy issues. This historic gathering of 15 representatives from Montana Brewers, Montana Taverns, Montana Distributors, Montana Gaming, and the state, are meeting in hopes of developing a bill to address brewery issues within the liquor control statutes. We have high hopes that this group, who has never assembled before, can assist us in making much needed improvements and provide insight throughout this process.

The Montana Brewers Association will once again commission an economic development study. This year’s study will measure 2012 and 2013 growth and be available in the late spring/early summer.

We are intending to host 4 events once again this year so mark your calendars:

• 2nd Annual Spring Festival in Billings – Our second Spring Fest is coming and we are hoping to top last year’s attendance and fun. We are still working on details but we are aiming for April or May at the Metra Park.
• Helena’s 150 Birthday Brew Fest – August 16, Centennial Park – Helena is 150 years old this year having struck gold in 1864. The city has asked us to host an event and we are excited to be working with them to make this one of the marquee events for the city for this coming summer.
• 6th Annual Montana Brewers Fall Festival – Oct. 11, Caras Park – Our third year in Missoula, the Montana brewers are coming back with their Festival Release Beers and hoping to have over 100 beers available to sample.
• 3rd Montana Brewers Conference – Oct. 12, and 13, Downtown Holiday Inn, Missoula – Our annual technical conference for brewers and staff to meet and engage one another on brewing techniques and policy.

The Montana Brewers Association wants to thank our passionate patrons throughout the state for their support in 2013.