Sen. Peters Co-sponsors Bill Supporting Michigan's Small Breweries

By Edward Cardenas

SOUTHFIELD (CBS Detroit) -U.S. Sen. Gary Peters, D-MI, announced Wednesday he is co-sponsoring legislation that would reduce the per barrel tax rate paid by small breweries.

Peters is co-sponsoring the bi-partisan Small BREW Act, which would reduce the tax rate per barrel of beer from breweries that produce less than six million barrels of beer annually.

"Michigan is home to some of the finest beers and breweries in America, and our brewing industry is emerging as a key sector of our state's economy, supporting thousands of good-paying jobs in Michigan," Peters said in a release. "I'm proud to support this bipartisan legislation that will help small breweries in Michigan and across the country sell their products and grow their businesses."

Michigan has seen explosive growth in breweries in recent years. The state had three in 1991, and now there are over 150 microbreweries across the state that have created over 7,000 jobs. Officials state the breweries in Michigan have a total economic impact of over $608 million in 2014.

"This legislation will help Michigan's small breweries continue to invest in their companies, grow their businesses and reach new customers," said Scott Newman-Bale, Partner at Short's Brewing Company in Bellaire, Michigan, in a release.

The Small BREW Act would dropping the tax rate per barrel from $7.00 to $3.50 for the first 60,000 barrels a brewery produces. It would then save small breweries an additional $2.00 on every barrel until they hit 2 million barrels.