E-Malt.com News article: USA, CT: Taxes for beer production to be lowered

Senator Richard Blumenthal says he's backing a plan that would allow the state's growing craft beer industry to create new jobs and bring more tourists to the state, Wtnh.com reported on July, 05.

The plan would also give brewery owners a major tax break.

It turns out one of the hottest businesses around is making some cold ones. The Thomas Hooker Brewery has grown 600 percent in the past six years.

"And this whole kind of transition from the big ubiquitous brands to the smaller homemade craft brews has been wonderful for us," said Curt Cameron, Hooker Brewing Company.

However, as tasty as the beer is, the federal tax bill is hard to swallow. Beer producers are subject to a federal excise tax.

"It comes down here and it goes into this next machine which actually labels them," Cameron said.

Congress is looking at lowering that tax. Blumenthal supports the bill.

"This kind of small business is really Connecticut's future," Blumenthal said. "This business is a gastronomic jewel, and also an economic jewel."

Beer production is measured in barrels and right now small breweries pay $7 a barrel in excise tax. The proposal would cut that in half, so breweries would only be paying $3.50 a barrel with the hope they would reinvest that savings in the company.

"What we do is we have two shifts," Cameron said. "The first brewer comes in at four in the morning."

The bill would cut taxes in half for breweries producing less than 60,000 barrels a year. Right now, Hooker makes 12,000.

"This tax cut will help us to the tune of $40,000-$50,000, which could mean a couple new employees, some new equipment," Cameron said.

And it could help the brewery expand, which could bring not just jobs, but tourism dollars too. The bill has bipartisan support, which is refreshing, so Blumenthal is expecting it will have a smooth finish.



06 July, 2012