Senator Gary Dahms (R-Redwood Falls) has introduced SF 587, a bill that would allow Schell's Brewery and other medium-small brewers to qualify for the brewer tax credit qualification modification.
This is the second pass Dahms has made at securing the change.
Last March, Josh Moniz of the New Ulm Journal reported in Brewery bill brings Schell’s back into tax credit:
A bill in the Minnesota Legislature expanding the qualification for a brewery tax credit will allow Schell's Brewery to maintain regular production without losing out on thousands of dollars each year.
. . . [the bill would] change the qualification for the tax credit from breweries producing less than 100,000 barrels of fermented malt beverage per year to breweries producing less than 250,000 barrels. The credit itself provides $4.60 per barrel for the first 25,000 barrels sold by a qualified brewery, with a maximum of $115,000 awarded. The maximum payout for the credit does not change with the qualification expansion.
Sen. Gary Dahms (R-Redwood Falls), who is an author on the Senate bill, said the bill is a perfect way to grow business at no cost. He said the expanded qualification doesn't have a big impact on all breweries, but it prevents the definition from being a hurdle as a brewery grows.
"The only real problem is when a brewery reaches that 100,000-barrel mark. If they lose that credit, they have to produce a lot more barrels to make up the difference. If they stick to just 99,999 barrels to stay profitable, that's not good for business or Minnesota," said Dahms.
Schell's Brewery President Ted Marti said Schell's and Summit Brewing Company spearheaded the push for the expanded definition. Schell's currently doesn't qualify for the credit because it produces 130,000 barrels a year. . . .
"Small (for breweries) isn't as small as it used to be. It's bigger for all breweries. At the moment, only about two Minnesota breweries will fall under this credit. But, it will matter to others in the future," said Marti. . . .
So far there's no House companion bill; Bluestem hopes that one will be introduced soon.
Dahms is joined in sponsoring the bill by Sandy Pappas (DFL-St. Paul), Jim Metzen (DFL-S. St. Paul), Julianne Ortman (R-Chanhassen) and Lyle Koenen (DFL-Clara City).
Helping out Schell's and Summit unites rural and urban Minnesotans, and the legislative team backing this bill is bipartisan, gender and geographical balanced, bringing into rural, suburban and urban over sacred local brew.
Bluestem can think of no more honorable goal for Minnesota's lawmakers than passing this bill and sending it to Governor Dayton's desk.
Photo: One of the peacocks at Schell's.
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