ELK RAPIDS, MI – U.S. Senator Gary Peters (MI), a member of the Senate Small Business Committee and the Small Brewers Caucus, today toured Short’s Brewing Company’s production facility, where he discussed bipartisan legislation he cosponsored to reduce excise taxes for small craft breweries, wineries and distilleries. Michigan has the sixth-highest number of craft breweries in the country with more than 150 breweries across the state. Michigan’s beer industry supports more than 7,000 jobs and contributes more than $608 million to the economy.
“Craft breweries like Short’s are helping to strengthen Michigan’s economy by creating jobs and stimulating tourism, and I’m proud to help support our state’s growing craft beverage industry,” said Senator Peters. “By cutting excise taxes and reducing burdensome paperwork, small producers will see great cash flow and increased opportunities to innovate, expand and grow as Short’s Brewing Company is doing.”
“Short’s Brewery’s new expansion project will help our team of talented brewers continue to improve quality and efficiency, continue to grow our company and stimulate the economy in Northern Michigan,” said Scott Newman-Bale, Partner at Short’s Brewing Company. “We thank Senator Peters for his efforts to reduce excise taxes for craft beverage makers so we can reinvest in our business and help Michigan’s beer industry continue to grow.”
The Craft Beverage Modernization Act cuts excise taxes for small beverage producers to help launch new businesses, expand facilities and operations, create new jobs and hire workers. The legislation reduces the federal excise tax from $18 to $16 per barrel on the first 6 million barrels produced by brewers. Domestic breweries producing less than 2 million barrels annually would also be eligible for a rate of $3.50 per barrel instead of the current $7.00 on the first 60,000 barrels, and $16 per barrel on the subsequent 1,940,000 barrels.
The legislation also includes a provision Senator Peters introduced to lower the excise tax rate on distilled spirits from $13.50 per proof gallon to $2.70 per proof gallon on the first 100,000 gallons produced per year. Michigan has the third highest number of craft distilleries in the country, with nearly 40 across the state, many of which opened in recent years.
Short’s Brewing Company was founded in 2004, and has been producing in their Elk Rapids facility since 2009. The expanded facility will include a new 2,500 square foot warehouse facility, upgrades to their in-house laboratory and a 1,000 square foot cold storage facility built on-site in Elk Rapids.