Brewers could net $1 million in savings from tax break

PORTLAND, Maine (AP) - Brewers in Maine could save about $1 million this year, thanks to a special tax break.

The Portland Press Herald reports brewers will benefit from the Craft Beverage Modernization and Tax Reform Act that was included in tax reforms passed last year. Under the act, federal taxes on barrels of beer will be slashed in half to $3.50 for the first 60,000 brewed barrels. After 60,000 barrels, brewers will pay $16 per barrel, instead of $18.

Allagash and Shipyard could save more than $200,000 in taxes. Experts say smaller brewers won’t save as much but note the money could contribute to new equipment.

Consumers won’t see much of a difference in pricing. The cuts are set to expire in 2019, but lawmakers say they’d like to extend them.

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Information from: Portland Press Herald, http://www.pressherald.com