Drinks Industry Tax Cuts Extended Through Next YearDecember 23, 2019
The Craft Beverage Modernization and Tax Reform Act, which includes key tax breaks for distillers, wineries, brewers, and importers, has been extended for another year. Congress included the measure as part of its larger year-end tax package and the bill was signed into law late Friday.
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. Those rates have now been extended through 2020.
“We look forward to continuing to work with Congress and the administration on permanently lowering tax rates for craft distillers to give them certainty for growth and planning beyond 2020,” said Distilled Spirits Council president and CEO Chris Swonger. —Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.