Washington, D.C.– Congressmen Erik Paulsen (MN-03) and Ron Kind (WI-03) have introduced H.R. 2903, the Craft Beverage Modernization and Tax Reform Act to modernize the tax code and streamline regulations for producers of craft beverages, cider, wine, and distilled spirits. The bill combines and builds on a number of different proposals in Congress including the Small BREW Act (H.R. 232), the Fair BEER Act (H.R. 767), the Distillery Excise Tax Reform Act (H.R. 1172), the CIDER Act (H.R. 600), the AGED Spirits Act (H.R. 867), and the Craft Beverage Bond Simplification Act (H.R. 2238). Paulsen previously introduced the Small BREW Act and Kind was an original cosponsor of the Fair BEER Act.

“Over the past few years, we’ve seen small brewers in Minnesota and around the country continue to meet the needs of a public that is growing in its appreciation for craft beverages,” said Paulsen. “At the same time, these brewers are burdened by out-of-date regulations and high excise taxes that make it difficult for them to grow their business and play a role in their local economy. Combining popular bills with targeted fixes will allow these innovative businesses to expand and create American jobs.”

“The beer industry is an important part of our past, present, and future in Wisconsin and plays a critical role in our economy,” said Kind. “I am proud that we could come together and find a compromise that helps Wisconsin brewers – large and small, old and new tap new markets and continue to thrive.”

Along with providing needed tax relief for brewers, cider makers, vintners, and distillers, the Craft Beverage Modernization and Tax Reform Act also eliminates red tape and streamlines regulations for these industries. Nearly 90 percent of these businesses would be exempted from complex bonding and bi-weekly tax filing requirements. In addition, the legislation would reduce administrative backlogs by ensuring proper funding for the Alcohol and Tobacco Tax and Trade Bureau. The Craft Beverage Modernization and Tax Reform Act has the support of a number of related industry groups like the Brewers Association and the Beer Institute.

Joining Paulsen and Kind in introducing the legislation are Rep. Pat Tiberi (OH-12), Rep. Lynn Jenkins (KS-02), Rep. Richard Neal (MA-01), Rep. Peter DeFazio (OR-04), Rep. Earl Blumenauer (OR-03), and Rep. Steve Womack (AR-03).  

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee and is a member of the House Small Brewers Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov. 

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