Regardless of how you feel about the recently passed tax bill politically, you may want to propose a toast in celebration with your friendly neighborhood brewer. The American Craft Brewery, which continues to develop into a burgeoning industry in NH, received a much-appreciated tax break that will go down as crisp as a cold IPA.
Small Brewers win big
The measure will be of much bigger help to small brewers than the national behemoths, which could go a long way in protecting these vulnerable but talented businesses from being swallowed up. Brewers that produce 2 million barrels or less will pay $3.50 per barrel in excise tax for the first 60,000 barrels they produce. This is a 50% savings from the previous rate of $7 per barrel. This potential $210,000 savings over the first 60,000 barrels produced could be a make or break figure for new brewers, and the barrel limitations prevent larger brewers from taking advantage of a windfall not intended for them.
A popular move for the populous
The national Brewers Association estimates that 97% of American breweries can produce less than 60,000 barrels, which means most brewers will be paying $3.50 per barrel across the board. The remaining 182 American breweries that surpass the 60,000-barrel mark with pay $16 per barrel (down from $18) from the 60,001st barrel to the last. The Brewers Association lobbied to make the new measure permanent but as of now it expires in two years.