On Thursday, May 5th, U.S. Senator, Pat Toomey (Pennsylvania District 15) visited D.G. Yuengling & Son for a tour of Yuengling’s original manufacturing facility in Pottsville, Pa. After the tour, Senator Toomey held a press conference to discuss his co-sponsoring of the Craft Beverage Modernization and Tax Reform Act, an initiative the Brewers of Pennsylvania supports.
“Yuengling is a great, iconic Pennsylvania company with a great workforce and product,” said Senator Toomey. “Beer is a very heavily taxed product, and I am proud to co-sponsor this bill, which will lower taxes for craft brewers. Craft beer sales have grown, and this bill will help with taxes, and in turn help families save money. This is a great opportunity for the people of Pennsylvania.”
The Craft Beverage Modernization and Tax Reform Act reforms the federal excise tax structure on beer by:
- Reducing the federal excise tax to $3.50 per barrel on the first 60,000 barrels for domestic brewers producing fewer than 2 million barrels annually and reducing the amount they pay from 60,001‐2 million to $16 per barrel.
- Reducing the federal excise tax to $16 per barrel on the first 6 million barrels for all other brewers and all beer importers.
One-hundred percent of the breweries in Pennsylvania will be impacted by this bill. The Brewers Association views this legislation as a jobs bill. In the first 12-18 months after the bill is implemented economists predict that there will be 9,000 additional jobs created and a $320 million economic impact.