New tax legislation means big savings for small breweries
WILMINGTON, NC (WWAY) — On Friday, President Trump signed into law the most significant tax legislation in three decades. The overhaul includes tax cuts that are projected to save the alcohol industry $4.2 billion over a two year period.
Small breweries will see a 50 percent reduction for the first 60,000 barrels of beer they sell, dropping their payment from $7 per barrel to $3.50.
John Savard, CEO and co-owner of the Wilmington Brewing Company, is excited about what those tax cuts could mean for his business.
“The federal tax being cut in half is going to help us a great deal, saving us $10,000 next year, and maybe up by a third the next year, $13,000, and the year after that, $20,000 or something like that.”
As Savard and his wife Michelle look to grow their business, paying less in taxes will allow those resources to be better spent in their favor.
“We want to have certain beers make it all the way to Charlotte and Asheville, and to make that happen we need to have another driver, another salesperson, and with this tax law we hope that we can afford another sales and distribution guy.”
Although the federal tax cuts will be a big help, Savard hopes the state of North Carolina will follow suit.
“The state still has a little bit of a ways to go, we hope that they follow the federal government’s lead and kind of cut our taxes a little bit because the North Carolina beer market is huge.”
While Savard is thankful for the potential opportunities associated with these tax cuts, he says he and other brewery owners are not the only ones who will benefit.
“Everybody’s brewery is going to do a little bit better, every bottle shop is going to do slightly better, and every restaurant that’s buying these beers is going to do a little bit better, and it’ll be just better for everybody. A rising tide lifts all boats.”