HI HB1123

Creates a reduced tax rate of $0.23 per gallon for small breweries and brewpubs on the first 60,000 barrels of beer brewed or produced during a taxable year in Hawaii.

Defines "small brewery or brewpub" as a brewery or brewpub producing not more than 2 million barrels of beer per taxable year.

Defines "barrel" as a container holding not more than 31 gallons or wine gallons of liquor.

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) rates.

Effective for taxable years beginning after January 1, 2020.