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A Big Beer Battle Is Brewing Over Tax Breaks

Large brewers oppose legislation proposed by small brewers


BeerBoth large and small beer makers are looking to cut the taxes they pay the government, but they are going about it in different ways.

Large beer brewers like Anheuser-Busch InBev (BUD), Molson Coors (TAP) and Constellation Brands (STZ) want to see federal excise taxes cut from $18 a barrel to $9. Smaller brewers, including Boston Beer (SAM) and the  (BREW) and taxes on their products cut from $7 a barrel to $3.50, U.S. News & World Report notes.

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However, despite the fact that both groups want their excise taxes cut by 50% a barrel, they are pressuring legislators to vote for two separate bills.

The BEER Act, pushed by larger brewers, has debuted in the U.S. House of Representatives and is expected to reach the Senate this week. Larger brewers have dispatched representatives to persuade Senators to back their bill.

Small and craft brewers, meanwhile, have advanced a bill that not only cuts their excise taxes, but seeks to redefine who is a craft brewer, potentially excluding some brewers like Boston Beer.

An industry association representing large brewers says it will fight the small brewers legislation, while small brewers have criticized the BEER Act as more costly than their own proposal.

Article printed from InvestorPlace Media,

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