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Washington, D.C.— Today, House Small Business Committee Chairwoman Nydia M. Velazquez (D-NY) and Ranking Member Steve Chabot (R-OH) penned a letter to the Chair and Ranking Member of the House Ways & Means Committee in support of H.R. 1175, the Craft Beverage Modernization and Tax Reform Act of 2019.  The bill would make permanent tax reforms passed in 2017 that have lowered the tax burden on small alcoholic beverage producers and streamlined outdated regulations, allowing small craft producers to focus on growing their business and creating jobs.

In recent years, small businesses have flourished within the alcoholic craft beverage industry. In 2017, the industry totaled sales exceeding $31 billion. By permanently simplifying the tax code for these beverage producers, H.R. 1175 would provide long-term certainty for the industry.  

“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 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.”

“Small beverage producers are an economic driver for many of our nation’s Main Streets,” said Ranking Member Chabot. “This bill will help to ensure they have the stability needed to plan for the future and continue to create jobs.”

In the letter, both Chairwoman Velázquez and Ranking Member Chabot call on the Ways & Means Committee to make the tax reforms permanent.

The text of the letter is below. For a PDF, click here.

Dear Chairman Neal and Ranking Member Brady:

As Chairwoman and Ranking Member of the House Committee on Small Business, we write in support of H.R. 1175, the Craft Beverage Modernization and Tax Reform Act of 2019, which permanently reduces the tax burden on alcoholic beverage producers, streamlines duplicative and outdated regulations, and ensures small, innovative producers have opportunities to grow their operations.

The craft beverage industry plays an important role within the small business ecosystem.  With sales exceeding $31 billion in 2017, businesses producing craft beverages are creating jobs and contributing to local economies all across America. This growing and flourishing industry is transforming Main Streets from coast to coast.

As you are aware, the provision contained within the Tax Cuts and Jobs Act, which recalibrated the federal excise tax on alcoholic beverage producers is set to expire at the end of this year.^[1] Aimed at reducing burdens and increasing investment opportunities, the tax provision has resulted in producers enhancing operations, expanding offerings, and creating jobs in every Congressional district.

As you explore next steps, we respectfully request that you consider the role small businesses and small alcoholic beverage producers have on our economy, and their vital importance. By making the federal alcohol excise tax reforms permanent, businesses will have the long-term certainty and stability they need to grow. Doing so addresses the feedback our Committee has heard again and again — to simplify and streamline the tax code for small firms.  As has been shown repeatedly, when small businesses are growing and expanding, so does the American economy.

Please contact our House Small Business Committee staff, Gerardo Bonilla with the Majority at 202-225-4038 or Robert Yavor with the Minority at 202-225-5821 with any questions.

Sincerely,

Nydia M. Velázquez                                                               Steve Chabot

Chairwoman                                                                            Ranking Member

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