Please ensure Javascript is enabled for purposes of website accessibility PA House Finance Committee hears testimony to support craft beer industry

PA House Finance Committee hears testimony to support craft beer industry

ALLENTOWN, April 16 – Today, the state House Finance Committee heard insight from experts in the state’s craft brewing industry, including local brewers and leaders of the Brewers of Pennsylvania trade association, on legislation that would update Pennsylvania’s Malt Beverage Tax Credit program.

The committee met at Sherman Street Beer Company in Allentown for a public hearing on a bill introduced by state Rep. Ana Tiburcio, D-Lehigh, that would allow more local breweries to take advantage of Pennsylvania’s Malt Beverage Tax Credit and provide flexibility to manage their credits.

 

Tiburcio said that supporting the craft brewing industry in Pennsylvania benefits local businesses that encourage community positivity.

 

"As a business owner myself, I am devoted to empowering small businesses in the Lehigh Valley, especially businesses that can revitalize our communities,” Tiburcio said.

 

“Breweries serve as important community gathering spaces where people go to grab locally made food and drinks and connect with friends, family and colleagues. Most of us have one in our district. This bill would help us preserve those craft breweries, ensuring that people have more options than the largest national beer brands."

State Rep. Steve Samuelson, D-Northampton, chair of the House Finance Committee, said that making existing tax credits more accessible and flexible for local businesses is a win-win-win for business, communities and the state. “Pennsylvania is home to a significant craft brewing industry, and our Malt Beverage Tax Credit was designed to buoy those growing businesses,” Samuelson explained.

 

“However, we discovered that too many smaller breweries were unable to use the full amount of these tax credits within that three-year period and unable to sell their remaining credit to other breweries. Today’s testimony showed that this commonsense change to extend the credit up to five years would allow more local breweries to invest in their facilities and flourish and give them the flexibility to sell their unused credits to other Pennsylvania breweries.”

 

The Malt Beverage Tax Credit Program is available to breweries that make capital expenditures to purchase or upgrade their facilities or equipment up to a maximum of $200,000. There are up to $5 million in credits available annually for Pennsylvania brewers, but currently are unable to be transferred, sold or refunded if left unused after three years.