Beer Price Could Rise By End Of Month If Tax Break Expires
The Craft Beverage Modernization and Tax Reform Act could expire at the end of the month. Over the past two years, the act lowered federal excise taxes for breweries, wineries and distilleries. This allowed producers to use money they saved in taxes on their operations.
“During these two years, the Brewers Association, our national organization, has collected that and has demonstrated that the tax savings go back into the business and create jobs and really been responsible for maintaining growth," Rob Fullmer with the Arizona Craft Brewers Guild said.
Fullmer says there is still a chance to extend the tax break but time is running out.
“We’re asking our brewers to make two sets of calculations in their growth patterns forecast and we feel that that is paralyzing effect on our growth," he said.
Fullmer wants companies to prepare for whatever happens. If it is not renewed, the tax on a barrel of beer will double in price and consumers likely will pick up the tab.
EDITOR'S NOTE: This story has been updated to clarify that only the tax on a barrel of beer would double.