NJ Steps Up
Ryan has been working his butt off, both at the brewery and for the Guild, and it’s starting to pay off.
The entire New Jersey delegation to Congress has signed on to co-sponsor the Craft Beverage Modernization and Tax Reform Act (CBMTRA)!
“This is pretty awesome!” Ryan says. “It tells me that our elected officials in Washington are really listening to the little guys they represent.”
(Say it with us: “com-BOOOOOO-trah”.)
Aimed at reducing the excise tax for small breweries, distilleries, cideries, and wineries, CBMTRA would reduce the tax liability for brewers producing under 60,000 barrels a year — 98% of the industry — including CMBC. We’re currently assessed at $7/barrel, and the new rate would cut that in half to $3.50/barrel. For bigger guys producing between two million and six million each year, the rate would reduce from $18/barrel to $16/barrel.
The Brewers Association estimates that this tax cut would create an additional $320M in the brewing industry, allowing New Jersey’s breweries to hire additional workers and expand operations. With each job created in the brewing industry, the BA estimates an additional 45 jobs created in related industries, from agriculture to retail.
“For such a small tax concession, the ripple effects are enormous,” Ryan says. “This legislation stands to create over 4,000 jobs in New Jersey alone. With every dollar saved by small, independent brewers in this state, an additional $8 is added to the economy.
“At a time when the economy is just beginning to return to pre-recession levels, this legislation could not be more important.”
“We are happy that the entire New Jersey delegation has chosen to support the Craft Beverage Modernization and Tax Reform Bill,” says Jim McGreevy, president and CEO of the Beer Institute, a national trade association for the American brewing industry, representing both large and small brewers, as well as importers and industry suppliers. “The hard work and leadership Ryan Krill and Cape May Brewery have provided in advocating the importance of this legislation with the New Jersey delegation has been key. With 253 bipartisan cosponsors in the House of Representatives and 47 bipartisan cosponsors in the Senate, we hope to have the opportunity to pass this bill into law during this legislative session.”
And that’s awesome thing about CBMTRA: it enjoys broad-based, bipartisan support in Congress. With all of the partisanship and acrimony in the Capitol these days, it’s nice to see that both sides of the aisle can come to an agreement about what’s best for this rapidly-growing sector of the economy.
Why? Because beer brings people together. Even Democrats and Republicans. That so rarely happens and it’s nice to see. While CBMTRA probably isn’t going to bridge the vast divide slowly engulfing our country, beer can do its part to bring it back together.