Congress To Include Extension Of Industry Tax Cuts In Year-End Legislation

With the year winding down, U.S. lawmakers have added a one-year extension of the Craft Beverage Modernization and Tax Reform Act to a year-end legislative package, assuaging fears that distillers, winemakers, brewers, and importers could see a significant tax hike in the new year.

The Act, which was originally passed in late 2017 to cover a two-year period ending December 31, reduced the federal excise tax on distillers’ first 100,000 proof gallons from $13.50 a proof gallon down to $2.70, and allows all wineries regardless of size to claim a credit of between $.535 and $1 per gallon on the first 750,000 gallons of production.

“While not yet a done deal, this is a significant relief for craft distillers across the country who were facing a 400% tax increase beginning January 1,” said Chris Swonger, president and CEO of the Distilled Spirits Council of the U.S. “We will continue to urge Congress to do the right thing, support small businesses, and pass this critical piece of legislation.”—Daniel Marsteller

Tagged : Craft Beverage Modernization and Tax Reform Act, The Law

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