# Reduced-rate barrels

A term used when buying brewery.

The first sixty thousand barrels a year taxed at the low rate, shared across commonly controlled brewers.

The federal excise rate on the first sixty thousand barrels is a fraction of the standard one for a brewer producing under two million, which is most of the trade. The clause that catches buyers is the controlled group rule: where brewers are commonly controlled, that quantity is apportioned among them and is not granted to each. A [searcher](https://searchspheresource.com/glossary/searcher) who buys a second brewery therefore splits one allowance across two breweries and finds the effective tax rate on both has moved. Model the excise line for the group you will own, not the business you are looking at.

Part of: Buying a Brewery (https://searchspheresource.com/guides/buying-a-brewery)

Source: https://searchspheresource.com/guides/buying-a-brewery/terms/reduced-rate-barrels
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt