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Job creation β€” via the BEER Act

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March 10, 2011, 2:02 pm by Daniel Strauss

A bipartisan Senate duo has introduced legislation they say would create jobs, albeit through an unlikely means: beer.

Sens. John Kerry (D-Mass.)
and Mike Crapo (R-Idaho) on Wednesday introduced the BEER Act β€” the Brewers Employment and Excise Relief Act β€” which reduces excise taxes on beer.

Kerry estimates the legislation would create jobs at many of the 1,600 small breweries across the country, which employ a total of 100,000 people. That includes several microbreweries in Massachusetts, such as Sam Adams, named for one of the Founding Fathers and a former governor of Massachusetts.

The bill cuts the tax on the first 60,000 barrels of beer produced from $7 per barrel to $3.50.

β€œThis bill will help ensure that these small businesses keep people on the payroll and create jobs even during tight economic times,” Kerry said in a statement announcing the legislation.

The bill also would lower the tax rate on production over 60,000 barrels, to $16 per barrel. That, Kerry said, would leave brewers with $27.1 million more a year β€œthat can be used to support significant long-term investments and create jobs by growing their businesses on a regional or national scale."

Additionally, the bill works to incentivize states to produce crops used in beer, like barley and hops.

The measure has 15 co-sponsors.

"I remain optimistic this bill will pass this year to create new jobs and new markets," Crapo said.


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