Tax cuts mean big savings for Coast breweries - WLOX.com - The News for South Mississippi

Tax cuts mean big savings for Coast breweries

The new tax reform laws passed by Congress are adding up to more savings and better beer for Coast breweries. (Source: WLOX) The new tax reform laws passed by Congress are adding up to more savings and better beer for Coast breweries. (Source: WLOX)
GULFPORT, MS (WLOX) -

Craft beer producers around America are poised and ready to take advantage of tax cuts passed by Congress. Because of the new tax laws that went into effect at the beginning of this year, breweries will see significant savings. For the 12 microbreweries in Mississippi, the new law opens the door on reinvestment.

Chandeleur Brewing Company in downtown Gulfport is excited about a business opportunity provided by tax reform legislation passed by Congress. The new law cuts the federal excise tax for breweries, wineries and distilled spirits producers in half. As a result of saving money on the cost of doing business, breweries see an opportunity to expand their operations.

"There are so many benefits," said Dave Reece, Chandeleur's brew master. " It frees up a lot of cash for us that was going to the government. We're going to be able to reinvest in the company. We're going to create some jobs, hopefully. Ultimately, it's going to mean better beer for everybody; more beer and more jobs. 

The National Brewers Association calls the Craft Beverage Modernization and Tax Reform Act a tremendous step forward for America's small brewers and historic legislation. According to the Mississippi Brewers Guild, 12 craft beer breweries now operate in the state with five producing products  on the Gulf Coast.

Brewers believe this law shows that the craft beer industry is gaining ground in terms of national recognition as an important player on the American  business scene.

"There's more than 5,000 breweries in the country now," said Reece. "We're a legitimate business. This is a real good way to help the little guy."

The excise tax is cut from $7 a barrel to $3.50 on the first 60,000 barrels for domestic brewers producing less than two million barrels annually. The estimated national tax savings is $142 million a year.

At Chandeleur, the thinking is they will be ready, willing and able to parlay tax cuts into significant reinvestment.

"Anytime you leave more money in the pocket of the small business owner, they're going to put it back into their business," said Reece. "You are going to see a quick return on this."

Copyright 2018 WLOX. All rights reserved.

  • NEWSMore>>

  • LIST: Some South Mississippi schools cancel Wednesday classes because of cold

    LIST: Some South Mississippi schools cancel Wednesday classes because of cold

    Tuesday, January 16 2018 10:19 PM EST2018-01-17 03:19:44 GMT

    Another winter blast reaches South Mississippi Tuesday and the forecast includes the possibility of snow and ice in several counties in South Mississippi. So, some school administrators are taking no chances.

    More >>

    Another winter blast reaches South Mississippi Tuesday and the forecast includes the possibility of snow and ice in several counties in South Mississippi. So, some school administrators are taking no chances.

    More >>
  • House plan: Little change in aid to schools in next 2 years

    House plan: Little change in aid to schools in next 2 years

    Tuesday, January 16 2018 7:26 PM EST2018-01-17 00:26:04 GMT

    There would be little change in state aid to Mississippi public school districts in the next two years under a new funding formula being pushed by House Republican leaders.

    More >>

    There would be little change in state aid to Mississippi public school districts in the next two years under a new funding formula being pushed by House Republican leaders.

    More >>
  • Wintry mix possible Tuesday evening

    Wintry mix possible Tuesday evening

    Tuesday, January 16 2018 7:05 PM EST2018-01-17 00:05:05 GMT
    A Winter Weather Advisory is in effect for the low possibility of snow, ice, and rain this afternoon and evening.A Winter Weather Advisory is in effect for the low possibility of snow, ice, and rain this afternoon and evening.

    While there is increasing confidence in wintry mix actually happening this evening in South MS, the question remains will it be enough to actually cause a major travel hazard.

    More >>

    While there is increasing confidence in wintry mix actually happening this evening in South MS, the question remains will it be enough to actually cause a major travel hazard.

    More >>
Powered by Frankly