Posted On December 21, 2020
The bipartisan deal on an end-of-the-year legislative package made over the weekend includes the Craft Beverage Modernization and Tax Reform Act (CBMTRA), along with other COVID relief measures. Passage of CBMTRA will make permanent the reduced federal excise tax (FET) rate that has been in place since 2018, and will help Montana breweries avoid an $800,000 tax hike next year. Without Congressional action, the tax rate is set to double on January 1.
Montana Brewers Association Executive Director Matt Leow issued the following statement in response to the inclusion of CBMTRA in the package:
Today we raise our glasses to say cheers and thank you to Sen. Tester, Sen. Daines and Rep. Gianforte for cosponsoring this legislation and ensuring tax relief for brewers was included in the package. The craft brewing industry is facing unprecedented challenges, from reduced taproom business and weak keg sales due to COVID-19 to aluminum can shortages and increased can prices, but today craft brewers across Montana are celebrating news that Congress will deliver on the promise of tax relief for our industry.Beer is bipartisan and so is providing relief to American businesses and workers suffering from the COVID-19 pandemic and its fallout. Making the reduced FET rate permanent and providing another round of funding for the Paycheck Protection Program will help these local businesses get through what’s looking to be a very tough winter for our industry.