Alcohol Industry to See Reduced Taxes Under New Tax Bill

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Random Row is looking forward to savings next year Random Row is looking forward to savings next year
Breweries, wineries, and distilleries will benefit Breweries, wineries, and distilleries will benefit

Within the new federal tax bill that was recently passed by Congress is a provision that could help the growing alcohol industry.

Under that new tax bill, the provision would give alcohol producers a two-year reduction in federal excise taxes that are worth $4.2 billion.

All sectors of the alcohol industry will see reductions in taxes ranging from brewers to distilleries and wineries.

Small brewers, like Random Row Brewing Company in Charlottesville, would see their tax rate cut in half from $7 a barrel to $3.50 a barrel.

In addition to brewers, liquor producers will see a cut in taxes from $13.50 to $2.70 per gallon.

“I think it's great,” says Kevin McElroy, the lead brewer at Random Row. “For a small new brewery like ours, every dollar counts, so the tax break is going to save us $3.50 per barrel of beer that we make. And we're doing about 600 barrels projected next year, so it's going to be a nice savings for us.”

Random Row says this new provision will save them between $1,500 to $2,000 in 2018.

The tax break could make it a lot easier for them to expand if the brewery decided it wanted to do that.

McElroy believes that everyone is excited because not only does it help small brewers, but big brewers as well.

Those new tax provisions will take effect in 2018.