Iowa brewers receive tax break under federal tax changes
Iowa brewers are toasting the recently approved federal tax changes, saying a tax break targeting their industry could spur expansion and more profits.
Keg Creek Brewing is a large craft beer producer in southwest Iowa. The Des Moines Register reports that Keg Creek is also one of the about 80 local breweries eligible for a tax break from President Donald Trump’s tax plan.
The new “Craft Beverage Modernization and Tax Reform Act” says breweries that produce fewer than 2 million barrels annually will be taxed $3.50 on the first 60,000 barrels made every year. Brewers saw a $7 barrel tax previously.
The Brewers Association found that Iowa produced about 61,000 barrels of craft beer in 2016, which means every ounce of state-brewed beer would benefit from the tax break.
Information from: The Des Moines Register, http://www.desmoinesregister.com