HI HB365

Creates a new tax category for small breweries and brewpubs, defined as facilities producing not more than 2 million barrels of beer per taxable year.

Imposes a reduced gallonage tax of $0.23 per gallon on the first 60,000 barrels of beer brewed or produced annually by small breweries and brewpubs.

Beer produced by small breweries and brewpubs beyond the first 60,000 barrels in a taxable year is taxed under the standard section 244D-4(a) rate.

Exempts beer or draft beer brewed or produced in-state by small breweries and brewpubs from the general liquor gallonage tax, subject to the new preferential tax rate.

Applies to taxable years beginning after December 31, 2010.