Just-passed tax bill to give alcohol industry a break

The just-passed tax bill is going to give a big boost to the alcohol industry. The senate put in a provision that gives beer, spirits and wine producers a two-year reduction in federal excise taxes.

Posted: Dec. 22, 2017 6:52 PM
Updated: Dec. 22, 2017 7:02 PM

MEDFORD, Ore.-- The just-passed tax bill is going to give a big boost to the alcohol industry.
The senate put in a provision that gives beer, spirits and wine producers a two-year reduction in federal excise taxes.

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NewsWatch 12 spoke to a local brewery to see how the new tax rate will impact their business.

Opposition Brewing Company Co-Owner Nick Ellis says, "We get taxed three times at this point, we get taxed on the equipment we use to make the product, we get taxed on the product itself as we make or sell, and the income produced on the sale of that product."

He says their brewery produces about 6 barrels a week.

But the tax cut will make a large impact for breweries making thousands of barrels a month.

Small brewers will see their tax rate cut in half, from seven dollars per barrel to three-dollars and fifty cents for the first 60,000 barrels.

Big brewers will get a break with their tax rate on the first six million barrels of beer produced or imported going down from 18-dollars to 16-dollars per barrel.

Opposition Brewing Company Co-Owner Nick Ellis says, "For a brewery on our scale, it's very small which a number of us in the valley are very small, you're looking at a range of 30-50 dollars probably, but everything helps."

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