New law saves Montana breweries money
KALISPELL, Mont. —
Congress recently passed a bill that included a two-year provision to the Craft Beverage Modernization and Tax Reform Act, which means big savings for Montana's breweries.
The act cuts the federal excise tax breweries pay on their barrels in half. That comes out to just $3.50 per barrel. This applies to the first 60,000 barrels for a domestic brewery that produces less than 2 million barrels a year, which all of Montana’s breweries fall under.
For the Great Northern Brewery in Whitefish, lowering the federal excise tax means they will save $25,000 in taxes in 2018. The brewery’s general manager Marcus Duffey is a member of Montana Brewers Association and he has campaigned for this. He talked with the members of the association about how they felt about the act.
"I think overall optimism,” said Duffey. “People are thrilled to see an opportunity to grow their business and we are all looking to do that in various aspects of distribution, sales and anyway that can happen."
Duffey told NBC Montana they will put their money towards their equipment and packaging.
The act started Jan. 1, 2018 and is set to end on Dec. 31, 2019.
If you want to find out more information on how the act affects your business, you can click here for the National Brewers Association website.