U..S. Sens. Tom Carper and Chris Coons have cosponsored legislation aimed at giving smaller brewers a tax break that could create more jobs.
The Small Brewer Reinvestment and Expanding Workforce Act, or Small BREW, would reduce the excise tax on each barrel of beer brewed by small brewers.
Brewers generally pay an $18 excise tax on each barrel brewed. Small brewers, currently defined as those that brew fewer than 2 million barrels of beer a year, pay a reduced excise tax of $7 per barrel for the first 60,000 barrels of beer they brew each year. The legislation would cut the excise tax applicable to brewers producing up to 6 million barrels per year to just $3.50 on the first 60,000 barrels and $16 on additional barrels below 2 million per year.
“From Dogfish Head and Twin Lakes to Iron Hill and Fordham, and among many more, small brewers are invigorating communities across Delaware, creating jobs and brewing unique products that are shipped across the country and enjoyed by millions of Americans,” Carper, a member of the Senate Finance Committee, said. “The role of government is to create a nurturing environment for job creation, and a big part of that is ensuring that small businesses have a fair tax burden that helps them grow early, hire more workers and thrive for the long haul. This bill aims to do just that.”
“Delaware’s craft breweries are not only an important part of our state’s economy, but its personality,” Senator Coons said. “Craft breweries innately have a high potential for local growth and the Small BREW Act will help more of them fulfill that potential. Helping our small breweries grow and create more jobs in our communities in this targeted way is a smart investment.”
An economic impact study by Dr. John Friedman at Harvard University found that the bill would generate $153 million in economic activity in the first year and almost $865 million over five years and create nearly 4,400 jobs in just the first year.
The small brewer threshold and tax rate was established in 1976 and have never been updated, the senators noted in a release. Since then, the annual production of America’s largest brewery increased from 45 million barrels to 105 million barrels. Raising the ceiling that defines small breweries from 2 million barrels to 6 million barrels more accurately reflects the intent of the original differentiation between large and small brewers in the U.S.
The brewing industry has undergone a major consolidation as overall beer consumption has remained flat or declined.
However, craft breweries, while comprising only a small portion of total sales, have been gaining on the majors with unique products. Delaware now has nine craft breweries of various sizes, with Dogfish Head in Milton and Fordham-Dominion in Dover being the largest of the group. Dogfish reports it is on track to to produce 202,000 barrels this year. It was listed as the nation’s 13th largest craft brewer.
Craft brewery for Milford
Eric and Megan Williams have been waiting for months to officially release the news that they will be opening a craft brewery in Milford. Mispilliion River Brewing will be located in the Milford business park off of Airport Road and is set to open in the early fall of 2013.Over the past seven months, the couple has been developing and presenting a business plan to several local banking institutions for funding.
Owning a small painting business in the 90s has always been Eric’s desire to go back into business for himself. With approval of funding, the Williams’ will begin to implement the design and construction of the craft brewery in the new facility.Click on the link below for the full story from Milford Live.
via Milford Brewery Set To Open | Milford LIVE! – Milford, DE.
Dogfish Head CEO to work on Chicago Eataly brewery
Birreria Chicago will see the work of Sam Calagione (Dogfish Head), Teo Musso (Birra Baladin) and Leonardo DiVincenzo (Birra del Borgo). They will design the brewery, oversee the recipes, train the Eataly Chicago head brewer and participate in brews on site, according to the Dogfish Head blog.
All recipes will include both American and Italian artisanal ingredients and techniques. Additionally, Birreria will feature an list of individual beers from Dogfish and other partners.
Birreria Chicago is scheduled to open before the end of the year, within Eataly Chicago, located at 43 East Ohio Street. The event will be celebrated with an exclusive beer dinner and toasted with the first onsite Birreria Brothers collaborative brew.
Eataly is the largest artisanal Italian food and wine marketplace in the world. First established in Turin, Italy, in 2007, the Eatalian concept has moved to othert countries. The first U.S. Eastaly opened in Manhattan, with Calagione and well known restaurant owners Mario Batali, Joe and Lidia Bastianich involved in the venture.
