The Craft Beverage Modernization and Tax Reform Act (CBMTRA) seeks to extend or permanently establish tax relief that alcohol producers and importers received as part of the Tax Cuts and Jobs Act, which are set to expire at the end of this year. Brewers Association president and CEO Bob Pease claims that the bill has empowered small businesses in a tremendous way. Tax relief in the past two years has reduced the federal excise tax from $7 to $3.50 per barrel on the first 60,000 for domestic brewers producing fewer than 2 million barrels annually. In addition, the legislation reduced the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers, and kept the $18 per barrel excise tax for brewers that produce more than 6 million barrels annually.
Source: Brewbound May 2019