Michigan breweries to benefit from tax reform bill - WNEM TV 5

Michigan breweries to benefit from tax reform bill

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It looks like Michigan breweries are going to benefit from the new tax law.

“This does benefit every single brewery in Northern Michigan and obviously in the last few years we’ve seen a lot of new ones coming and it’s going to help some survive and it’s going to help others succeed but it’s going to help everyone,” said Scott Newman-Bale, partner at Short’s Brewing

A two-year version of the Craft Beverage Modernization and Tax Reform Act will lower the federal excise tax for breweries.

“As a result of that, our excise tax on a per barrel basis will go down from $7 down to $3.50,” said Rick Schmitt, co-owner of Stormcloud Brewing Company. “So, it’s a reduction in what we are paying in tax every year.”

Right now, Michigan craft brewers contribute more than $2 billion to the state’s economy and provide more than 14000 jobs.

“The beer itself is an add-on tax so we still pay every other tax that every other industry pays on top of this tax,” said Newman-Bale. “So, they used to be seen as a lot of negatives to alcohol which there still is some but there’s a lot of positives too.”

But what do the savings mean for the more than 300 breweries in the state?

“For us as a business, it means we will have a few extra dollars to reinvest in our company and bring on extra staff and provide a better product,” said Schmitt.

“We’re working right now, obviously the bill is fairly new, but we’re already looking at ways it changes our budget and we’re going to put it straight back in,” said Newman-Bale. “So, we’re trying to figure out where to put the expansion money likely some new canning, new fermentation, a little bit more capacity, lots of things coming for 2018.”

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