Brewers Association: The 2024 Election and Small and Independent Breweries

Senior Director of Federal Affairs

Federal elections were held on November 5, 2024. Polls predicted close outcomes for control of the presidency and the House and Senate. As of publishing, there are many races that remain undecided where votes are still being counted.

President: Early this morning, the Associated Press and other news agencies declared former President Donald Trump the winner against Vice President Kamala Harris.

Senate: There were 33 Senate seats at play in the 2024 election. Eighteen of the seats were held by Democrats, four by independents, and 11 by Republicans.

Republicans took the majority in the Senate, flipping three Senate seats (West Virginia, Ohio, and Montana) and taking the chamber from Democratic control. They currently have a majority with 52 senators, and Vice President Elect JD Vance to break any potential ties.

There are still multiple races (Wisconsin, Michigan, and Pennsylvania) that have not been called; two lean Democratic and one leans Republican. It is likely that Republicans will grow their majority.

The Senate Bipartisan Small Brewers Caucus will lose at least five members to retirement and losses. Caucus members Tammy Baldwin (D-WI) and Bob Casey (D-PA) are in races that are too tight to call.

House of Representatives: All 435 seats were up for reelection in the House. Fifty seats were open due to retirement, primary losses, or death.

218 representatives are needed to have a majority in the House. The Republicans currently hold 197 seats to the Democrats’ 177 seats.

The House Small Brewers Caucus will lose 27 members due to retirement, losses, and death.

Caucus co-chair Rep. Patrick McHenry (R-NC-10) is retiring at the end of this Congress.

As of publishing, there are still 61 undecided races.

Rep. Dan Newhouse (R-WA-4), the lead Republican co-sponsor of the USPS Shipping Equity Act, is in a toss-up race that has yet to be decided.

Rep. Marilyn Strickland’s (D-WA-10 c) race has not yet been called, but she leads by a fair advantage. She is a co-chair of the House Small Brewers Caucus.

Potential issues of interest to small and independent breweries:

Tariffs: President-elect Trump has been vocal about his support to increase the tariffs that went into place under his administration as well as instituting new ones. Breweries can expect the 232 tariffs on aluminum and steel to remain in place with possible increases. This could impact the price of aluminum cans and equipment. Breweries who import goods from China could also see an increase in the 301 tariffs impacting a range of products.
Taxes: 2025 was already predicted to be a big year for taxes. Congress was already focused on many tax provisions from the Tax Cut and Jobs Act that lapsed or will soon expire. They will also look at new tax proposals and consider how to cover the costs of a new piece of legislation. Potential topics of interest to small and independent breweries are:
- Section 199A which allows eligible small business owners to deduct up to 20% of their qualified business income (QBI) from pass-through entities, such as sole proprietorships, partnerships, and S corporations. This tax provision is set to expire at the end of 2025. More than 70% of breweries are organized as pass through; if they are utilizing it, losing this tax provision could impact them significantly.
- Allowing for the full depreciation of research and development (R&D) investments in the year that they occur. This popular language is bipartisan and was included in the Tax Relief for American Families and Workers Act of 2024. R&D is available to companies investing in product development, formulations, recipes, and techniques.
- No income tax on tips was an issue proposed by Trump and embraced by both campaigns. Multiple pieces of legislation to eliminate income tax paid on tips were introduced by Republicans in the House and Senate. The proposal would benefit front-of-house employees though there are still many questions about how it would be executed. The estimated cost of this proposal ranges from $10-$25 billion a year so it could be hard to pass without a pay-for in place.

Government Funding: December 20 is the deadline to pass the fiscal year 2024 budget. There is a possibility that there will be another continuing resolution moving it to 2025. Going forward, if Republicans control all branches of the government, there may be funding cuts to agencies across the board. The Alcohol and Tobacco Tax and Trade Bureau, which oversees the industry, the USDA Agricultural Research Service, and others could see budget reductions that could impact everything from working on the executive report on competition to label and formula approval times.

These are just a few of the topics that the Brewers Association is monitoring on behalf of the brewing industry. A lot may happen in the next week, and we will work to update you as information becomes available. Check out the Brewers Association’s monthly federal updates on legislation and regulations that can impact your brewing operations.

Brewers Association Resources for Navigating Election Outcomes and Politics in the Workplace

For many people, elections are emotional due to the impact they can have on our future and daily lives. You may experience a wide range of reactions from your team members. You will likely also see that some employees are more deeply impacted than others. Election outcomes can often be perceived as mega-threats, making it difficult to leave our feelings at home and go about our normal workday. Offering understanding, empathy, and access to mental health resources is essential to help teams process the emotional impact.

Regardless of your or your team’s political views, it is important for employers to understand their employees’ rights when it comes to political expression in the workplace, as well as best practices when navigating political discourse in the workplace.

Link to author biography

Written ByKatie Marisic , Senior Director of Federal Affairs

Katie Marisic is the senior director of federal affairs at the Brewers Association. Based in Washington, D.C. she plans and executes legislative, regulatory, and political strategies to drive the association's federal affairs presence on Capitol Hill. Prior to working for the BA, Katie was vice president of political affairs at the National Association of Federal Credit Unions. She got her start in politics working on congressional campaigns during the 2006 and 2008 elections. A Pennsylvania native, Katie is a long time craft brewing supporter. In 2013 she helped to open Atlas Brew Works in Washington, D.C. When she is not advocating for the craft brewing community on Capitol Hill you can sometimes find her pouring beers at a local tasting room.