Reps. Chabot, Velázquez Support Bill to Reduce Burden on Small Beverage Producers
WASHINGTON – Small craft beverage producers used a reduced federal excise tax contained within the Tax Cuts and Jobs Act to expand operations and create jobs. However, the provision is set to expire at the end of this year, creating deep uncertainty for producers. Today, Ranking Member Steve Chabot (R-OH) and Chairwoman Nydia Velázquez (D-NY) sent a letter to House Committee on Ways and Means Ranking Member Kevin Brady (R-TX) and Chairman Richard Neal (D-MA) in support of H.R. 1175, the Craft Beverage Modernization and Tax Reform Act of 2019.
“Small beverage producers are an economic driver for many of our nation’s Main Streets,” said Ranking Member Chabot. “This bill will ensure they have the stability needed to plan for the future and continue to create jobs.”
“As I have witnessed back home in my district in New York City, small breweries and other craft beverage producers are thriving, breathing new life into our Main Streets and our economy,” said Chairwoman Nydia Velázquez. “That is why I am proud to support legislation to permanently lower the tax burden and modernize regulations for small producers operating in this industry. I urge my colleagues on the Ways and Means Committee to advance this legislation and I thank Ranking Member Chabot for his bipartisan approach to this important issue that impacts communities across the country.”
In the letter, Ranking Member Chabot and Chairwoman Velázquez wrote, “As you are aware, the provision contained within the Tax Cuts and Jobs Act, which recalibrated the federal excise tax on alcohol beverage producers is set to expire at the end of this year. Aimed at reducing barriers and increasing investment opportunities, the tax provision has resulted in producers enhancing operations, expanding offerings, and creating jobs in every Congressional District.”To read the full letter, click here.