The Distilled Spirits Council today issued the following statement from Council President & CEO Kraig R. Naasz on congressional passage of a two-year version of the Craft Beverage Modernization and Tax Reform Act as included in the comprehensive tax reform package, the Tax Cuts and Jobs Act.
“The Distilled Spirits Council commends U.S. House and Senate leaders and their colleagues for approving the Craft Beverage Modernization and Tax Reform Act as part of the Tax Cuts and Jobs Act. This legislation reduces the federal excise tax on distilled spirits producers for the first time since the Civil War, which will enable the more than 1,300 operating distilleries nationwide to re-invest in their businesses and stimulate job growth in their communities.
“Supported by 303 cosponsors in the House and 54 cosponsors in the Senate, this landmark legislation creates a more equitable tax structure for distillers, brewers, winemakers and importers of beverage alcohol by equalizing the federal excise tax on spirits, beer and wine for the first 100,000 proof gallons. It also provides for the same in-bond treatment of spirits transferred in bottles as for beer and wine and exempts the spirits aging process from interest expense capitalization rules.
“We look forward to working with the U.S. Department of Treasury’s Tax and Trade Bureau to implement these important tax provisions as soon as the President signs this legislation into law.”