The passage of the “One Big Beautiful Bill” has transfixed Washington observers over the past two months. A centerpiece of President Trump’s agenda, the bill, now signed into law, provides a number of benefits for brewers. These include:

1. Making permanent Section 199A of the Internal Revenue Code. That provision provides a 20% credit to “pass through” entities like LLCs and S corporations and helps level the playing field between such entities and other corporations. The BA believes that over 90% of all craft brewers are pass-through entities.
2. For research and development (R&D) expenses incurred domestically, authorizing brewers to immediately deduct R&D costs in the year incurred or capitalize and amortize costs over the useful life of the research.
3. Reinstating 100% first-year “bonus depreciation” for many business expenses.
4. Amending Section 45Q of the Code to put CO₂ utilization on the same tax footing as CO₂ sequestration. This mitigates the potential that the tax incentive for CO₂ sequestration could create shortages for CO₂ end-users like brewers.
5. Creating a tax credit for tipped workers to offset taxes on up to $25,000 of tipped income. This provision will increase the take-home pay of tipped workers like brewery retail staff, although it will only benefit workers making enough to pay federal income tax in the first place.