Distilled Spirits Council of the United States President & CEO Chris Swonger released the following statement after the U.S. Senate passed a one-year extension of the Craft Beverage Modernization and Tax Reform Act:
“Craft distillers can take a collective sigh of relief knowing that both the House and Senate have passed a one-year extension of the Craft Beverage Modernization and Tax Reform Act, extending the current tax rates through 2020 and providing much needed stability for these small businesses. The bill now heads to President Trump’s desk for signature, and with his support, distillers can begin planning for the year ahead. We are grateful to members on both sides of the aisle in both chambers for recognizing the critical importance of this bill and for working hard to pass this extension before the end of the year.”
Background:
Introduced by Senators Ron Wyden (D-Ore.) and Roy Blunt (R-Mo.) and by Representatives Ron Kind (D-Wis.) and Mike Kelly (R-Pa.), the legislation includes reforms enacted in 2017 that create a fair and equitable tax structure for brewers, winemakers, distillers and importers of all beverage alcohol. Under the legislation, the federal excise tax reduction would expire on Dec. 31, 2020. The Senate vote was 71-23.