A slash in taxes for Connecticut craft breweries-- Legislation was passed this year to reduce this tax which was cut in half.
This cut will now allow some local breweries to buy new equipment so they can make more beer, which means more of a selection for consumers.
“A tax cut like this enables us to purchase that one or new piece of equipment that helps us make better beers,” said Chris Sayer, of Brewery Legitimus.
Some brewers have been pushing to lower the excise tax for years.
With the help of U.S. Senator Richard Blumenthal, Congress passed legislation to reduce the tax on barrels of beer brewed by small brewers earlier this year.
The tax was slashed from $7 to $3.50, for the first 60,000 barrels a brewer makes.
“Almost all the craft brewers in CT will qualify for this major 50 percent tax cut,” Blumenthal said.
The cut saves some brewers big bucks.
For example, Thomas Hooker Brewery at Colt in Hartford will save $50,000 to $60,000 a year. For other smaller breweries like Cliffside Brewing in Wallingford, they'll save about $100 a year.
The savings depends on how much beer a brewery makes.
This tax cut benefits little guys who are expanding, providing new jobs, growing new businesses and providing CT beer consumers with a great product.
For many, they'll be able to use that money to buy new equipment, hire more people and bump up production.
“To be better and stronger competitors in this industry and that's why it's so important for us,” Sayer said.
Congress also cut taxes for the big guys. Some larger distributors could save billions because of this nationwide tax cut.
Speaking of beer, Channel 3’s Something's Brewing segment airs on Sunday morning around 8 a.m.
See more segments here.
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