Brewers Association

Economic Benefits

Economic Benefits from a Graduated Federal Excise Tax for Small Brewers

An economic impact study by Dr. John Friedman of Harvard University on H.R. 494 and S. 917 found that the tax recalibration provisions would generate over $183 million in economic activity in the first year and over $1 billion over five years. Federal tax revenue would fall by $16.9 million in the first year and only $96 million over five years. The study concludes that over five years such a recalibration would generate more than 5,000 jobs in the first year and an average of 400 jobs in each of the subsequent years.

Excise Tax Report Impact HR 494/S 917 Download PDF


The following chart summarizes the potential benefit for the impacted barrelage tiers. Note that brewers over 60K barrels benefit at both the less than 60K proposed tax rate and the 60K to 2 million barrel tax rate. Brewers between 2 and 6 million barrels benefit for their barrels up to 2 million.

 Barrels Total Barrels Total Industry
Current Tax
Total Industry
Proposed Tax
Savings
< 60K 7,670,171 $55,011,197 $26,845,599 $28,165,599
60 K - 2 M 16,138,352 $290,490,336 $258,213,632 $32,276,704
2M - 6 M 1,516,736 $27,301,248 $27,301,248 $0

Brewers Association

Purpose

To promote and protect American craft brewers, their beers and the community of brewing enthusiasts.