U.S. Rep. Mike Kelly (R-PA) this week introduced a bipartisan bill that would reform how alcoholic beverages are taxed across the nation.
The Craft Beverage Modernization and Tax Reform Act, H.R. 1175, sponsored on Feb. 13 by U.S. Rep. Ron Kind (D-WI), is companion legislation to S. 362, introduced on Feb. 6 by U.S. Sens. Roy Blunt (R-MO) and Ron Wyden (D-OR).
Rep. Kelly, co-chairman of the House Small Brewers Caucus, led 13 other original cosponsors in introducing H.R. 1175, including U.S. Reps. Darin LaHood (R-IL), Brad Wenstrup (R-OH) and Tom Reed (R-NY).
If enacted, the bill would make permanent an excise tax reduction on breweries, wineries and distilled spirits producers that became law as part of the Tax Cuts and Jobs Act in December 2017, a landmark Republican-led tax reform package passed during the 115th Congress.
Rep. Kelly noted on Wednesday that this proposal would build on the success of the law by ensuring craft-brew producers continue growing, hiring and creating American-made products.
“These small businesses throughout America exemplify the American dream and our country’s spirit of entrepreneurship,” Rep. Kelly said. “The Tax Cuts and Jobs Act gave them much needed relief from our previously burdensome tax code.”
In fact, the congressman noted that during tours of several local Pennsylvania breweries last year, he saw first-hand how they’ve already used tax savings to upgrade equipment and hire more staff.
“The bipartisan Craft Beverage Modernization and Tax Reform Act will ensure these pillars of our local communities continue to benefit from tax reform,” said Rep. Kelly.
Bob Pease, president and CEO of the Brewers Association, pointed out that 282 small and independent brewers are located in Pennsylvania, with many more in all 50 states.
“The Craft Beverage Modernization and Tax Reform Act saves this rising industry significant money each year,” Pease said. “The calibration is in place and provides these integral small businesses with additional capital enabling them to further invest and grow.”
H.R. 1175 has been referred for consideration to the U.S. House Ways and Means Committee.
S. 362, which has 15 cosponsors in addition to Sen. Blunt, including U.S. Sens. Pat Roberts (R-KS), Jerry Moran (R-KS), Rob Portman (R-OH), Shelley Moore Capito (R-WV), Cory Gardner (R-CO), and Joni Ernst (R-IA), is under review by members of the U.S. Senate Finance Committee.