CINCINNATI -- "It's a big deal."
That's what Dennis Kramer-Wine, Rhinegeist's director of distribution, said Thursday night about the controversial tax legislation passed Thursday by Congress.
The Tax Cuts and Jobs Act will slash the federal excise tax -- a tax on a specific item that is administered at a flat rate rather than a percentage -- for all breweries, distilleries and wineries. Rhinegeist produces around 80,000 barrels per year and will pay $3.50 on the first 60,000; the remainder will be taxed at $16 per barrel.
The cut will save Rhinegeist thousands of dollars each year, Kramer-Wine said. He added the brewery intends to use its savings to reinvest in the Cincinnati community and its staff, which has grown from a small group of five to over 300 people.
"We get to reinvest more money into what we do, into our infrastructure and into our people," he said. "We get to keep hiring and doing exciting things and stuff for Cincinnati."
He did not elaborate on any specific plans.
Ohioan breweries bring in around $2 million each year and employ around 4,000 people.