Craft breweries will have an extra reason to toast the coming New Year. Congress recently passed the Craft Beverage Modernization and Tax Reform Act. This bill cuts the excise tax in half on beer.
For Chris Spinelli, owner of ROC Brewing Company, every batch of beer counts. Spinelli says, this new tax bill will help micro breweries like his catch a break.
“For us alone we are going to save just about $300 this year,” Spinelli said.
The reduced excise tax on beer will be $3.50 per barrel from $7.00 for the first 60,000 barrels produced.
The New York State Brewers Association Executive Director Paul Leone, says they have been lobbying for this tax change for 10 years.
“Anytime a brewery saves even a few dollars, they put it right back into their business. They buy more tanks, they hire more people that’s just how the industry works that is how it has always works,” said Leone.
One of the newest brew houses on the scene is K2 Brothers Brewing, Co-Owner Kyle Kennedy says he is looking forward to collaborating with other brew houses.
“Rochester could be a destination point. People come here to taste amazing beers. No different than you get out in some of the Western Cities. It would be great for people to come here to strictly enjoy beer,” said Kennedy.
Kennedy says every glass filled is a dream come true and so far a risk worth taking.
This reduced tax bill will only last for two years and affects all businesses that produce alcohol such as breweries, distilleries and wineries. In the meantime the New York State Brewers Association will continue to lobby for a more permanent solution.