Brewers catch big break in tax bill

Riders finish the ride at Holler Brewing in May 2017. Riders finish the ride at Holler Brewing in May 2017. Photo: John Holler Photo: John Holler Image 1 of / 14 Caption Close Brewers catch big break in tax bill 1 / 14 Back to Gallery

The tax overhauled that passed in both houses of Congress today includes a windfall for brewers, vintners and distillers, which would have their excise tax bills cut significantly for at least two years. The impact could be particularly significant in Texas, which hosts about 200 craft breweries and two global giants that all will have more available cash.

Bob Pease, president and CEO of the Brewers Association, a trade group for the independently owned craft breweries, said lowering the excise tax has been a goal for the last eight years to help small operators and to boost jobs in an industry he sees at the forefront of a "renaissance in urban manufacturing."

He predicted that small brewers nationwide would add 6,000 to 9,000 jobs in the first 12 to 18 months by investing their savings into equipment and other upgrades that help them produce more beer. He hopes that will persuade Congress to eventually make the cuts permanent.

Pease noted that 97 percent of U.S. breweries currently produce fewer than 60,000 barrels per year and would see their excise taxes cut in half, to $3.50 per barrel. Midsize companies like Houston's Saint Arnold Brewing Co. would get the same cut, plus a $2-per-barrel savings, to $16, on units above 60,000.

Large breweries like Anheuser-Busch InBev, which has a large presence in Houston, would get that same tax break on the first 6 million barrels.

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The Brewers Association released the following statement from Pease: