Letter to the Hon. Richard Neal, Chairman of the House Ways and Means Committee, and the Hon. Kevin Brady, Ranking Members of the House Ways and Means Committee - Velázquez, Chabot Urge Leaders of Ways & Means Committee to Support Craft Beverage Bill

Letter

Dear Chairman Neal and Ranking Member Brady:

As Chairwoman and Ranking Member of the House Committee on Small Business, we write in support of H.R. 1175, the Craft Beverage Modernization and Tax Reform Act of 2019, which permanently reduces the tax burden on alcoholic beverage producers, streamlines duplicative and outdated regulations, and ensures small, innovative producers have opportunities to grow their operations.

The craft beverage industry plays an important role within the small business ecosystem. With sales exceeding $31 billion in 2017, businesses producing craft beverages are creating jobs and contributing to local economies all across America. This growing and flourishing industry is transforming Main Streets from coast to coast.

As you are aware, the provision contained within the Tax Cuts and Jobs Act, which recalibrated the federal excise tax on alcoholic beverage producers is set to expire at the end of this year.[1] Aimed at reducing burdens and increasing investment opportunities, the tax provision has resulted in producers enhancing operations, expanding offerings, and creating jobs in every Congressional district.

As you explore next steps, we respectfully request that you consider the role small businesses and small alcoholic beverage producers have on our economy, and their vital importance. By making the federal alcohol excise tax reforms permanent, businesses will have the long-term certainty and stability they need to grow. Doing so addresses the feedback our Committee has heard again and again -- to simplify and streamline the tax code for small firms. As has been shown repeatedly, when small businesses are growing and expanding, so does the American economy.

Please contact our House Small Business Committee staff, Gerardo Bonilla with the Majority at 202-225-4038 or Robert Yavor with the Minority at 202-225-5821 with any questions.

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