How Craft Beer Breweries Will Benefit From the Tax Bill

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Hidden away in the large tax bill Congress passed last week was a little provision that will help companies that make craft beer, mead, hard ciders, and artisanal spirits.

Smaller producers of these beverages will see drastically lowered taxes starting in the new year, according to Reuters. Here’s how it breaks down: Craft beer breweries will now pay a sales tax of $3.50 per barrel for the first 60,000 barrels they produce. Cider makers will see taxes fall to less than a penny per can produced compared to the previous ten cents. Smaller distilled spirit creators will now pay $2.70 per gallon for the first 100,000 gallons made; they were paying $13.34 previously.

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This portion of the bill was originally brought by Oregon Democratic Senator Ron Wyden and was titled “The Craft Beverage Modernization and Tax Reform Act.” The tax break will leave these makers with a little extra in their pockets to expand, experiment, or any other craziness. (Big producers like InBev and MillerCoors won’t be getting this break.)

But don’t expect to pay less for your favorite craft beer: Bob Pease, CEO of the Brewer’s Association, called the tax break “historic”—but said it would not result in lower prices. Bummer.

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