Craft beer makers across the country are seeking a federal tax cut that they say would help them increase production and hire additional employees, the New York Times reports.
The Small Brewer Reinvestment and Expanding Workforce Act, or Small BREW Act, would reduce the tax that brewers pay on each of their first 60,000 barrels from $7 to $3.50. For every barrel beyond 60,000 but under 2 million, the tax would be reduced from $18 to $16. After 2 million barrels, breweries would pay the $18 tax.
Arbor Brewing Company in downtown Ann Arbor.
Melanie Maxwell | AnnArbor.com
The tax reduction would apply to any brewery that produces fewer than 6 million barrels a year. About 95 percent of the country’s craft breweries and brewpubs produce less than 15,000 barrels a year, the report says.
The craft beer industry is booming in markets across the country, including in the state of Michigan where 17 breweries opened in 2011.
The Brewers Association says 409 small breweries and brewpubs opened in the U.S. in 2012, up 18.5 percent from the previous year. Overall beer sales were up 1 percent in 2012, but specialty brewers grew their share of the market by 6.5 percent.
In Washtenaw County, the Chelsea Alehouse opened this year and Grizzly Peak is in the midst of increasing its brewing capacity in preparation of the Old German opening.
Meanwhile, the Arbor Brewing Company owners opened their first international brewpub in India in 2012, and Wolverine State Brewing expanded its tap room and brewing capacity.
.Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.