Brewers of Pennsylvania Applauds State’s Malt Beverage Tax Credit
Harrisburg, PA – Pennsylvania Governor, Tom Wolf, recently signed a $1.3 billion revenue package just hours after the legislation became public and passed by the Pennsylvania House and Senate. Part of that package includes a Malt Beverage Tax Credit not to exceed $5 million annually. The Brewers of Pennsylvania (BOP), the state’s official brewing guild, fully supports this tax credit measure, and considers it a major victory for all craft breweries in the Commonwealth, particularly smaller breweries.
The measure will provide a tax credit on any capital expenditure that expands brewery operations. Unlike other manufacturers of alcoholic beverages within the Commonwealth, brewers pay a special excise tax on their production at the rate of a penny a pint (or $2.48 per barrel) to PA Revenue for beer sold in the state. Now, brewers can invest in their facilities and receive a credit against payment of this tax for the new dollars they invest.
The new tax credit is a win-win for both consumers and breweries, not just due to the potential of increased product supply, but important employment benefits, as well.
“This tax credit provides the resources needed to expand and keep up with rising consumer demand,” said Bill Covaleski, BOP President and President of Victory Brewing Company. “With manufacturing investment come more jobs. We know this from when the previous Capital Expenditures Excise Tax Credit was in place from 1974 to 2008. Now, with an annual cap of $200,000 per year per brewery, the majority of the benefits will flow to emerging and smaller breweries who may claim credit on virtually all of their initial manufacturing investment. With the passing of this legislation, Harrisburg has clearly seen the economic impact the hundreds of BOP members create for Pennsylvania.”
Since 2013, one of the top legislative goals for the BOP was to get a malt beverage tax credit passed. This new tax credit will greatly assist current Pennsylvania brewers, particularly smaller breweries, and will also open the door for those outside of the state interested in expanding operations to Pennsylvania.
About the Brewers of Pennsylvania - The Brewers of Pennsylvania (BOP), the state’s official brewing guild, brings together leaders of Pa.-based breweries in order to promote and protect the brewing industry in the state. A 501c6 trade association, the BOP is a strong and influential organization, serving the consuming public of Pa. by encouraging brand diversity in the market. BOP members employ an estimated 10,000 employees earning $296 million in wages and generating $1.1 billion in direct economic benefits to communities throughout the state. Its signature annual event is the popular Meeting of the Malts. #supportPAbeer