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Casey pushes tax cut for small breweries - abc27 WHTM

Casey pushes tax cut for small breweries

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HERSHEY, Pa. (WHTM) -

Sen. Bob Casey is pushing legislation that would cut significantly taxes for small breweries.

Casey (D-Pennsylvania) toured Troegs Brewing Company in Hershey on Tuesday and said his tax cut plan would help small breweries compete with larger companies.

He said the tax cut also has the potential to create jobs since small breweries would be more likely to expand and hire new employees.

"We have in Pennsylvania, I think, a particularly significant investment already in smaller breweries and it means a lot of jobs, but this legislation will allow us to do even more," Casey said.

"We're kind of in a catch-22 because we need to have more equipment to be able to make more beer, which ultimately needs more people to help us brew more beer, but to have more equipment we need more revenue," Troegs co-owner Chris Trogner said.

Companies that brew less than 2 million barrels of beer each year pay a reduced excise tax of $7 per barrel on the first 60,000 barrels and the full $18 tax for each additional barrel.

Under Casey's plan, small breweries would pay $3.50 per barrel on the first 60,000 barrels and $16 for each additional barrel below the 2 million per year.

Troegs, which produced about 55,000 barrels of beer last year, would have saved about $192,000 under Casey's tax cut.

"For a small brewery to propel their growth year after year, we're investing everything right back into the brewery," Trogner said. "I think having a little bit of relief would help us reinvest faster and more and continue to grow."

Casey said his bill has bipartisan support and should pass without much opposition.

"It's rare that you can find a tax cut that has such significant bang for the buck, both by way of economic impact and by way of job creation," he said.

 

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