Craft Beverage Modernization & Tax Reform Act Included In Year-End LegislationDecember 21, 2020
Congress is set to make tax cuts for drinks producers and importers permanent with the inclusion of the Craft Beverage Modernization & Tax Reform Act in its year-end legislative package. Both houses of congress are expected to vote on the bill today.
“This is a huge sigh of relief for struggling craft distillers who have been on pins and needles awaiting the outcome of these discussions,” said DISCUS president and CEO Chris Swonger. “While not yet a done deal, making the reduced tax rates permanent will serve as an economic lifeline for beleaguered small distilleries that have had their tasting rooms shut down for months.”
Under the Act, distillers pay a reduced excise tax rate of $2.70 per proof gallon for the first 100,000 proof gallons of distilled spirits (most craft distillers fall into this category); a rate of $13.34 per proof gallon for the next 22,130,000 proof gallons of distilled spirits; and a rate of $13.50 per proof gallon for production in excess of 22,230,000 proof gallons. —Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.