Have you started to get into craft brews as your go-to beer of choice? Have you noticed a reduction in the prices at your local pub or the six pack at the grocery store? You may want to raise a glass this weekend to your congressman. Most of us have heard that Congress passed The Tax Cut and Job Act that resulted in a decrease in the personal and corporate tax rate, which meant more money in our pocket. However, a lesser known provision decreased the federal excise tax on beer. US brewers and beer importers pay a federal excise tax on the number of barrels of beer that they produce annually. The new law created a new tiered payments structure:
- For domestic brewers producing less than 2 million barrels annually will pay a rate of $3.50 per barrel on the first 60,000 barrels produced per year
- Brewers and importers producing less than 6 million barrels will pay a rate of $16 per barrel produced per year, and
- For producers of over 6 million barrels per year an excise tax of $18 per barrel will be assessed.