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U.S. Sens. Susan Collins, R-Maine, and Angus King, I-Maine, made a successful push to get tens of thousands of additional visas to bridge an expected shortage of Maine workers next summer.
Updated: December 7, 2020
King, Collins join push to extend federal tax relief for craft brewers
Courtesy / Allagash Brewing Co.
While indoor tasting rooms remain closed, brewers such as Allagash Brewing Co. in Portland are offering a drive-thru and curbside pickup service.
U.S. Sens. Angus King, I-Maine, and Susan Collins, R-Maine, have joined a bipartisan push to keep in place existing federal tax relief for the growing craft beverage industry — aid brewers say they can't afford to lose.
A Dec. 1 letter addressed to Senate Majority Leader Mitch McConnell, R-Ky., and Minority Leader Charles Schumer, D-N.Y., makes a case for extending the 2017 Craft Beverage Modernization and Tax Reform Act beyond this year.
The provisions apply to brewers of craft beer as well as craft distillers, wineries, cideries and meaderies. Without a new bill, they face a significant increase in their federal excise taxes starting on Jan. 1.
"It is imperative that the Craft Beverage Modernization and Tax Reform Act be included in the next appropriate legislative package and acted upon before the end of the year,” lawmakers argue in the letter.
“As businesses struggle to retain workers and stay open, allowing the current rates to lapse would force many businesses across the country to lay off workers or close their doors permanently."
King told Mainebiz via email on Monday that "Maine's craft brewers are economic drivers and community leaders across our state — and they make some pretty great beer, too.”
He added: "As this industry continues to be an engine of growth for our state, Congress should continue its efforts to help these small businesses develop and thrive."
Noting that the producers support more than 4 million jobs nationwide, the letter warns that businesses affected by the pandemic have already been devastated and face even greater hardship with an increase in their federal excise taxes.
"Producers have already seen dramatic declines in revenues because of the closure of tasting rooms and restaurants, bars and other on-premise establishments and cancellations of major sporting events and concerts," the senators wrote. "Those losses ripple throughout the supply chain, affecting farmers, agriculture producers, manufacturers, truck drivers, warehouse workers and countless others."
The lawmakers also underscore that the bill, supported by 77 senators and 351 representatives, is a bipartisan priority and an important economic lifeline to thousands of businesses across the country.
The bill in question is S.362/HR. 1175.
Maine brewers 'can't afford that'
Sean Sullivan, executive director of the Maine Brewers' Guild, told Mainebiz that while his group is generally more focused on state rather than federal issues, the Craft Beverage Modernization and Tax Reform Act is a top priority for its members because it would have such a devastating impact if not passed.
"In real terms, if this tax act is not made permanent or at least extended, Maine brewers will have their excise taxes doubled starting on Jan. 1, 2021," Sullivan said.
He noted that excise taxes are paid on production, which come on top of taxes on sales, payroll and income that are paid by other businesses, adding that Maine's brewers, and the state's economy, will lose about $50,000 a year if the bill is not passed.
"Our brewers can't afford that, nor can our state," he said.
Maine Beer Co. owner Dan Kleban, board chair at the Brewers Association, the Boulder, Colo.-based national trade group, also said the industry can't afford to lose the tax protections.
"Because of the economic impact of COVID-19, most brewers are struggling and holding on for dear life," he said in a statement emailed to Mainebiz. "Without congressional action, our excise taxes will double. Needless to say, this would be devastating to our industry, especially to many of the new breweries who have only ever known this current tax rate.
"I thank Sens. King and Collins for having our back in these difficult and uncertain times, and recognizing the importance of this bill to the craft beer industry in Maine and across our nation."
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