Murkowski Leveling Playing Field for Alaska Brewers, Boosting Job Creation
CHART/DATA: Courtesy of University of Delaware
Senator to Announce Support for Small BREW Act at Kodiak Island Brewing Company
WASHINGTON, DC — Senator Lisa Murkowski will announce today that she is co-sponsoring S.917, the “Small Brewer Reinvestment and Expanding Workforce (BREW) Act” at a Kodiak Island Brewing Company event, in an effort to promote job growth, spur the $150 million industry in the state and level the playing field for Alaska’s small brewery and microbrew economy against big international conglomerates. Murkowski discussed the bill with the owner of the Kodiak Island Brewing Company earlier this month, and decided to back the effort after assessing the positive impacts it would have for the Alaskan economy.
“From Healy to Homer, from Fox to Skagway, Alaska’s brewing companies are a key component of our economies, communities and culture,” said Murkowski. “But in an economy of scale like beer, oftentimes things are tilted to the advantage of the large brewers and more challenging for the small businesses that make money in the community, spend money in the community and give back to their borough and state. Small businesses already face large start-up costs and overhead expenses, so the Small BREW Act would be a welcome relief, cutting their tax rate on the first 60,000 barrels in half, with a smaller cut past that point and clearing a stream of revenue that will allow them to hire more Alaskans and expand their operations.”
(King Street Brewery owners say the Small BREW Act would create jobs – CLICK to watch)
“As we’ve grown, we’ve had the opportunity to put all that cash back into the business and keep us growing,” said Dana Walukiewicz, co-owner of the King Street Brewery in Anchorage. “Any [tax] break would definitely help us generate additional opportunities for employment.
(Click for complete Chart/Data Courtesy of University of Delaware)
- The Small BREW Act would lower the federal excise tax paid by brewers from $7/barrel to $3.50/barrel on the first 60,000 barrels produced each year, and take two dollars off the $18/barrel tax for barrels between 60,001 and 2 million.
Harvard University researchers estimate the bill would create over 5,000 jobs in its first year.