Congress Considers Tax Cut For Small Brewers
DENVER (CBS4)- Beer making is already one of the fastest growing industries in Colorado and it could be set for even bigger things.
Congress is considering a tax cut for smaller breweries. The proposal could make the production of beer cheaper and and make those small breweries more popular than ever.
Colorado is the largest individual beer production state in the U.S. The breweries have become household names not only in the state but on both coasts and everywhere in between.
At the Boulder Beer Company, signature ales and lagers are bottled, canned and shipped out at a feverish pace.
"Beer production is an important part of our economy. We are the number one beer producer in the country," said Sen. Mark Udall, a Democrat representing Colorado.
Udall is proposing a significant cut in the expense to produce beer. Small brewers currently pay $7 for every barrel they produce. Large brewers pay $18. Udall wants to cut those costs in half.
"As you look at the growth industry and the number of jobs being created I think the sky is the limit," said Udall.
That tax cut could save brewers hundreds of thousands of dollars in taxes.
"We started with a little seven barrel brewhouse in 2008," said Upslope Brewing owner Matt Cutter.
The brewery is growing, even without the tax break. The company is moving to a building three times the size of the one they're in now.
"In the last two years since 2009, we're up 300 percent. It's been fantastic but it's also crazy," said Cutter.
Adam Avery from Avery Brewing Co. said his company is moving from a building that will make 45,000 barrel to one that will easily produce more than 250,000. He said the tax break will put more people to work.
"I don't think there's a brewer out there who would take that money and put it in his pocket," said Avery.
The passage of the tax cut could see an immediate effect in those who want to get into the business. There are already 70 new breweries in the planning stage in Colorado and more than 100 others in development.
