The 116th Congress has extended the current federal excise tax
(FET) rates for breweries for one year (2020). Those rates, which
were recalibrated lower in 2018, were slated to increase—in
most cases by 100 percent—unless Congress acted by Dec.
31.
"The lower FET rates have been a boon to small and
independent brewers located in all 50 states and nearly every
congressional district," said Bob Pease, president and CEO,
Brewers Association. "These savings empowered brewers to
reinvest in their businesses and resulted in an annual tax savings
of more than $80 million."
Brewers reinvested the additional capital by creating thousands
of new jobs, buying new equipment, expanding their operations, and
improving employee benefits. Thanks to the recalibrated rates,
craft brewing jobs grew by 15,000 in 2018 to more than 150,000
nationally—the largest job increase on record for small
brewers.
