Taxes on Distilled Spirits
In December 2020, Congress enacted into law the Craft Beverage Modernization and Tax Reform Act and made the lower federal excise tax rates permanent!
The Craft Beverage Modernization and Tax Reform Act was first enacted in 2017, extended for an additional year in 2019, and made permanent in 2020. Small distillers across the United States have utilized the tax savings to make significant investments in their businesses, thereby supporting their local communities.
Small distillers put the federal excise tax reduction to work by hiring additional staff, purchasing new equipment, providing health insurance or other benefits to employees, and increasing purchases from local agricultural suppliers.
Thanks to Congress, distillers avoided a massive tax increase and can now plan with certainty for the future.
COVID-19 Relief for Distillers
The COVID-19 crisis has significantly impacted distilled spirits producers. Over 800 distilleries across the country stepped up to produce hand sanitizer during the pandemic.
At the same time, as fewer Americans dine or enjoy a cocktail out, travel, or gather for events, craft distillers have experienced a 41% decline in revenue and have furloughed or laid off 31% of their employees. Restaurants, bars, and others within the hospitality industry have experienced heavy losses during the pandemic.
Additional economic relief is necessary to ensure that distilleries, restaurants, and bars weather this challenging time.
For additional information:
- FACT SHEET: About the Distilled Spirits Industry
- FACT SHEET: COVID-19 Economic Relief For Distillers (updated: March 31, 2021)
- FACT SHEET: Restaurants Revitalization Fund Fact Sheet (updated: March 31, 2021)
- Coalition Letter to Congress on Industry Relief (March 2021)
- DISCUS Letter to the House Small Business Committee on Paycheck Protection Program (PPP) (March 2021)
- DISCUS Letter to House Small Business Committee on Paycheck Protection Program (PPP) (March 2021)
- Comment to the Small Business Administration on Paycheck Protection Program (PPP) Loan Forgiveness (March 2021)
- Coalition Letter to Congressional Leadership Urging Inclusion of Restaurant Relief in Budget Reconciliation (February 2021)
- Beverage Alcohol Coalition Letter to SBA on Extending Relief for NAICS Code 72 Businesses to Distilleries with Tasting Rooms (February 2021)
Join Our Efforts
The Distilled Spirits Council Political Action Committee (DISPAC) has promoted the election of pro-business candidates across the United States since 1993. DISPAC exists to help fund the races of candidates and incumbents on both sides of the aisle who support distilled spirits producers and importers. Your voluntary contributions are critical to our role in the political process and have helped us establish our strong political backbone for decades. The threat of taxation and additional regulatory burdens are always looming so please consider joining our efforts today!
How You Can Help
Spirits United is a community of advocates united with a common goal to ensure adult consumers can enjoy distilled spirits where they want, how they want, and when they want. Spirits United brings together professionals in the distilled spirits industry, partners, customers and consumers.