Paulsen’s craft-brewing bill becomes law as part of national tax reform package

U.S. Rep. Erik Paulsen’s (R-MN) bipartisan legislation supporting craft brewers in Minnesota and across the country, which became law as part of the new Tax Cuts and Jobs Act recently signed by President Donald Trump, will help independent and small brewers thrive and grow local jobs, the congressman said recently.

“The craft beverage industry is doing amazing things for local economies across the country, and Minnesota, in particular, is a prime example of what its success means for jobs and economic growth,” Rep. Paulsen said during a Jan. 5 press conference at Minneapolis-based Insight Brewing, where he was accompanied by members of the Minnesota Craft Brewers Guild and others interested in the industry.

In fact, 83 percent of Americans live about 10 miles from a local craft brewery, according to Paulsen’s office.

Rep. Paulsen originally introduced the Craft Beverage Modernization and Tax Reform Act of 2017, H.R. 747, last January to update the tax code and simplify regulations for producers of certain alcoholic beverages, including craft beers, cider, wine and distilled spirits.

The legislation streamlines beer formulation approvals, makes beer recordkeeping and inventory rules more straightforward, and cuts down on administrative backlogs by providing appropriate funds to the Alcohol and Tobacco Tax and Trade Bureau, among other changes, according to a statement from the congressman’s office.

“Now it will be easier for local breweries to focus on growing their business and the local economy by expanding, creating more jobs, and fostering a sense of community,” said Paulsen, who serves on the House Ways and Means Committee and the bicameral Joint Economic Committee.

Lauren Bennett McGinty, executive director of the Minnesota Craft Brewers Guild, said during the press conference that the new tax reform will enable Minnesota’s craft brewers to keep expanding.

“Minnesota craft breweries are excited to continue making great craft beer that connects neighbors and serves as a source of pride for our communities,” said McGinty, who heads an organization connecting over 130 craft brewing members in Minnesota.

U.S. Reps. Mark Amodei (R-NV), Tom Emmer (R-MN), Mike Kelly (R-PA), Patrick Meehan (R-PA) and Pat Tiberi (R-OH) signed on to Paulsen’s legislation last year as original cosponsors. The bill eventually had 303 cosponsors. The Senate version, S. 236, also introduced on Jan. 30, 2017 by Sen. Ron Wyden (D-OR), had 54 cosponsors.