Press Release-
Continuing his advocacy for New York’s craft beverage industry, U.S. Senator Charles E. Schumer announced the inclusion of the Craft Beverage Modernization and Tax Reform Act (CBMTRA) in the FY2020 end-of-year omnibus legislation.
It will permanently reduce excise taxes for brewers, vintners, cider makers, and distillers and remove regulatory barriers to help New York’s craft beverage industry stay afloat.
Schumer explained that the legislation will provide critical economic relief for craft beverage alcohol producers across the state, many of whom have seen a significant decline in revenue and are struggling to remain open as a result of the ongoing economic crisis, especially those whose sales are mainly on premise.
“Craft beverage producers throughout New York not only brew, bottle, and distill great products, but they also attract visitors and pour hundreds of jobs into their local communities,” Senator Schumer said. “By making permanent the reduced tax rates for New York producers and removing regulatory barrier to accelerate growth, we can help local brewers, vintners, cider makers, and distillers make it through this economic crisis.”
Schumer added, “I have always said that New York’s breweries, wineries, and distilleries are the crown jewel of so many of our communities, with many of them bringing the added benefit of growing and reinvesting in their local economies. So by putting more money back into the hands of these businesses and making sure they are not choked off by bureaucratic red tape, we can ensure our craft beverage producers can tap into their full potential and make a full recovery from this downturn.”
There are an estimated 462 breweries, 450 wineries, 186 distilleries and 72 cideries across the state, supporting tens of thousands of New York jobs and contributing billions of dollars to the state’s economy:
- According to the Brewers Association, the craft beer industry has created approximately 29,000 full-time jobs in the state, with an annual economic impact of $4.9 billion.
- The New York Wine and Grape Foundation’s 2019 Economic Impact Study reveals that New York’s wine and grape industry directly created 71,950 jobs and contributes $6.65 billion in direct economic impact.
- According to the Distilled Spirits Council of the United States, New York’s distilled spirits industry supports 93,860 jobs and contributes $8.3 billion to the state’s GDP.
Brewers, vintners, cider makers, and distillers across New York celebrated the inclusion of the CBMTRA.
Sam Filler, executive director of the New York Wine & Grape Foundation, said, “The New York grape and wine industry applauds Senator Schumer’s steadfast advocacy for the industry in Washington, D.C., by making CBMTRA permanent, which will ensure that the industry continues to grow and positively impact New York’s economy.”
Paul Leone, executive director New York State Brewers Association, said, “For five years we’ve been trying to make the Craft Beverage Modernization and Tax Reform Act permanent, and for all of those five years Senator Schumer has been right there with us leading the charge to make this a reality. With everything going on in the world, he never forgot about the craft beverage community in New York State and thanks to his efforts, along with strong bipartisan congressional support, brewers in this state will continue to save money on their federal excise taxes to help them through this pandemic and beyond.”
“Thanks to Senator Schumer and his staff for working hard to build bipartisan support for this critical legislation that prevents a costly tax increase to all brewers and beer importers,” said Mary Beth Popp, vice president of corporate communications, FIFCO USA, parent company of Labatt USA and Genesee Brewing. “This legislation recognizes the significant impact our industry makes, providing millions of jobs while also contributing to the U.S. economy.”
