Dear Beer Enthusiasts, Homebrewers,
Breweries & Beer-Allied Companies,
We are asking you to support America's small brewers by making a very simple
request of your U.S. Representative to become a co-sponsor of H.R. 4278.
Federal legislation in the U.S. House of Representatives,
H.R. 4278 (link opens a PDF), seeks to enact a reduction in beer excise tax
for America's small brewers.
For small brewers brewing less than 6 million barrels annually, this legislation
would cut the small brewer tax rate in half, to $3.50/barrel on the
first 60,000 barrels, and reduce the upper tax rate from $18/barrel to
$16/barrel on beer production above 60,000 barrels up to 2 million barrels.
Of the 1,525 breweries in America, 962 are brewpubs and 470 are the smallest
bottling breweries, which produce volumes of 15,000 barrels of beer a year or
less and sell their beers in local markets. Once barrel equals about 13.8 cases
The original small brewer tax rate of $7/barrel was established in 1976 and has
never been updated. Since then, the annual U.S. production of America's largest
brewery increased from about 45 million to 107 million barrels and over 200
million barrels globally (or 1,240,000,000 five-gallon batches of homebrew!).
Much has changed and the challenges small brewers face as small American
businesses have grown dramatically since 1976.
Why is this a good idea?
A tax reduction will help grow small business breweries and provide greater
access to the beers you enjoy.
Harvard University's John Friedman's study,
Economic Impact of Small Brewers Excise Tax Reduction (H.R. 4278), (link opens a
PDF), reveals that H.R. 4278 would also help stimulate job creation quickly
and at a low cost:
The bill would generate more than 2,700 new jobs over the first year to 18
months, followed by an average of 375 new jobs per year over the following four
Please contact your U.S. Representative and ask that he/she sign on as a
co-sponsor of H.R. 4278.
We have developed a resource page to give you the information and tools you need
to make the case to your Representative for supporting this tax relief
measure—and by extension, for supporting the small brewery businesses that are
such a vital part of our local communities.
On the resource page, you will find a link to a list of current sponsors of H.R.
4278. If your Representative DOES NOT appear on this list, please take a moment
and email your Member of Congress to ask them to cosponsor H.R. 4278.
If your Representative is already a cosponsor, please email him/her a brief
thank you for their support of small brewers and you, the craft beer drinker and
Thanks for helping us advance the interests of all small brewers by contacting
your Representative on this issue. Your active support is absolutely essential
to our success.