Small BREW Act

Floor Speech

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Ms. COLLINS. Mr. President, Maine and Maryland have in common not
only delicious seafood but also fine craft beers.

I am delighted to join my friend and colleague Senator Cardin in
support of the legislation that we have introduced, S. 375, the Small
Brewer Reinvestment and Expanding Workforce Act, or Small BREW Act.

The title is more than just a clever acronym. It is a statement of
what our bipartisan bill really is all about. This is a jobs bill, and
those covered by the bill are small businesses, entrepreneurs who are
taking risks and creating jobs in communities around the country.

We often talk in this Chamber about what we can do to help create the
environment that encourages job creation. Our bill is one such
practical means where we can spur the creation of new jobs as well as
great products.

In Maine, we are proud to boast that our State is now home to more
than 60 breweries that produce more than 200 different brands. Maine
beer is shipped around the country and has developed a real following
among connoisseurs who have come to appreciate its quality and
craftsmanship. This, in turn, has led to new tourism opportunities as
visitors are drawn to our State to sample our delicious Maine craft
beers. As the craft beer industry grows, so too does demand for
American-grown barley and hops and American-made brewing, bottling,
canning, and other equipment. Beyond creating delicious beer, these
breweries are creating jobs. That is the whole rationale behind the
bill we have introduced.

In Maine alone, our craft breweries employ more than 1,400 people.
That is an extraordinary number of jobs. As the Senator from Maryland
has pointed out, these are jobs that are going to stay right here in
America. They are not going to be outsourced. These are small
businesses in our communities that are hiring people and making a
difference.

Nationally small and independent brewers employ more than 110,000
full- and part-time employees, generating more than $3 billion in wages
and benefits, and pay more than $2.3 billion in business, personal, and
consumption taxes, according to the Brewers Association.

What could we do to encourage even more employment in this area? The
answer is to reduce the Federal excise tax on small craft brewers, and
that is exactly what our bill would do. It would free up capital so
these small business owners can reinvest in their companies and create
more jobs.

Under the current law, as Senator Cardin has pointed out, these small
businesses pay $7 per barrel in Federal excise tax on the first 60,000
barrels they brew and $18 per barrel on every barrel thereafter. The
Small BREW Act would reduce these rates to $3.50 on the first 60,000
barrels and $16 for production between 60,000 and 2 million barrels.
Thereafter, the rate would remain at $18 per barrel.

We know from the economic analysis that has been done that such a
change would have a significant positive economic impact. A June 2013
study prepared by a professor, then at Harvard's Kennedy School of
Government, estimated that our bill would increase economic activity by
$1 billion over 5 years, create more than 5,000 new jobs in the first
year to 18 months after passage, and create approximately 400 new jobs
annually thereafter.

Again, I want to repeat, this is a jobs bill, and I am proud to
sponsor it with my friend Senator Cardin. I am also delighted that we
have the support of such a large number of colleagues on both sides of
the aisle, including my colleague from Maine, Senator King.

I urge all of our colleagues to take a look at this bill. If you want
to do something that is concrete and we know will create more jobs for
a growing industry that is carving out a niche in so many States across
this Nation, then work with us to achieve passage of the Small BREW
Act.

I thank the Presiding Officer.

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