How the Reduced Excise Tax Will Help Local Businesses

HORSEHEADS, N.Y. (18 NEWS) - The Craft Beverage Modernization and Tax Reform Act, included in new tax code, lowers the federal excise tax on alcoholic beverages for brewers producing less than 2 million barrels per year through 2019.

"The federal excise tax was $7 a barrel it's going down to $3.50 a barrel," Horseheads Brewing co-owner Edward Samchisen said. "So if you brew 1,000 barrels a year you would've paid $7,000 in taxes, now with the reduced rate you would only be paying $3,500. So that's cut in half, which is really nice."

Though Samchisen said many breweries across New York state aren't quite at that capacity, the savings are still pretty sweet.
 
"A lot of the breweries that are opening up they're not even 1,000 barrels a year," he said. "They're very small, they're like nano breweries so they don't produce a lot. So it's not going to be a huge savings for them, but any little bit does help."

And with material and labor costs continuing to rise, this break will help keep prices at Horseheads Brewing as low as possible.
 
"We have customers coming in from all over New York state telling us that we have some of the best craft beer prices in New York state," Samchisen said. "We like to hear that and it's definitely beneficial to Horseheads Brewing to try to keep our prices as low as possible."

Though Samchisen may not be around very long to reap the benefits:
 
"We've been thinking about it, we're getting up there in years and we're looking to retire," he said.

He said whoever takes over, certainly will.

"People that we're talking to they're going to keep everything the same if anything they're going to grow the business," Samchisen said.

For more information on Horseheads Brewing, follow this link.

For more on excise tax reductions follow this link.


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