Now that 51 U.S. Senators and 284 U.S. Representatives are co-sponsoring the Craft Beverage Modernization and Tax Reform Act, Congress should make passing tax reform for spirits, beer and wine a priority for the lame duck session, the Distilled Spirits Council said today.
“A majority of members in both bodies of Congress support reducing the federal excise tax on spirits, beer and wine,” said Distilled Spirits Council President & CEO Kraig R. Naasz. “Congress should pass this much-needed tax reform legislation to spur investment and job creation at distilleries, much as similar tax incentives have fostered the development of new wineries and breweries over the past 20 years.”
The Craft Beverage Modernization and Tax Reform Act reduces the excise tax on the first 100,000 proof gallons of distilled spirits to $2.70 per gallon, which is equivalent to the small producer tax rates enjoyed today by brewers and vintners. In addition, the legislation will reduce the excise tax rate on production above 100,000 gallons a year by 1 percent to $13.34 per proof gallon.
The Craft Beverage Modernization and Tax Reform Act is sponsored by U.S. Senators Ron Wyden (D-Ore.) and Roy Blunt (R-Mo.), as well as U.S. Reps. Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.). The adoption of this important legislation would mark the first time that taxes on distilled spirits have been reduced since the Civil War.