Brewers Association

Representative Schauer (MI) Latest Co-sponsor on Small Brewer Excise Tax Reduction Legislation

Representative Schauer (MI) Latest Co-sponsor on Small Brewer Excise Tax Reduction Legislation

Count of U.S. House of Representative sponsors of H.R. 4278 is now 26.


Currently, a small brewer that produces less than 2 million barrels of beer per year is eligible to pay $7.00 per barrel on the first 60,000 barrels produced each year.  Once production exceeds 60,000 barrels, a small brewer must pay the same $18 per barrel excise tax rate that the largest brewers pay.  H.R. 4278 creates a graduated beer excise tax rate of $3.50 and $16.00 for America's small brewers, while also increasing the annual barrelage threshold to qualify as a small brewer to 6 million barrels.

$3.50 Rate
Reducing the rate on the first 60,000 barrels to $3.50 per barrel would provide approximately $15.5 million per year to help strengthen our nation's smallest brewers and support their efforts to maintain and generate jobs. 

$16.00 Rate
Lowering the tax rate to $16 per barrel on beer production above 60,000 barrels up to 2 million barrels would provide small brewers with an additional $26.2 million per year that would be used to support significant long-term investments and create jobs by growing their businesses on a regional or national scale.

For more information, including a full listing of current cosponsors and information on how to contact your U.S. Representative, visit our resources page.

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