Newly-Passed Tax Bill Includes Tax Cuts For Alcohol Producers
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PITTSBURGH (KDKA) -- The just-passed tax bill is expected to boost the alcohol industry. That's because there's a tax cut in there just for producers of beer, wine and spirits.
It will save them billions, so you'd better believe brewers are raising a glass to the new legislation.
It's been 21 years since the Church Brew Works in Lawrenceville opened up. And, now, it's poised to prosper even more.
Small brewers will see their federal tax rate cut in half, from $7 a barrel to $3.50.
"We will benefit because we'll save some money, and we're gonna plow that money into new equipment, better equipment," said Sean Casey of Church Brew Works.
Big brewers are getting a break too, along with wineries and distilleries.
But the Brewers Association, which promotes craft brewing, calls the tax cut "monumental" for more labor-intensive small and independent brewers, and says this could mean thousands of new beer industry jobs.
Kevin Dougherty says it's the small businesses that need the support.
"I feel like it's important, because places like this give Pittsburgh character, and we're helping out local businesses, then we're keeping the neighborhood around and what makes the city special," he said.
Casey says he and other small brewers fought for this tax cut for years. Now, they can toast their success.
"They gave us this great, great holiday package, so cheers and keep drinking craft beer," he said.
The tax cuts on alcohol producers are set to expire in two years, but industry groups say they'll work to make them permanent.
