Bipartisan senators have introduced a bill specifically tailored to reduce excise taxes and regulations for the U.S. craft beverage industry. The bill aims to promote job creation and permanently reduce certain taxes and compliance burdens.
Craft Beverage Modernization and Tax Reform
The Craft Beverage Modernization and Tax Reform Bill of 2019 was introduced on February 6 by Senate Finance Committee (SFC) ranking member Ron Wyden, D-Ore., and Sen. Roy Blunt, R-Mo.
“By modernizing burdensome rules and taxes for craft beverage producers, this legislation will level the playing field and allow these innovators to further grow and thrive,” Wyden said in a February 6 press release. Moreover, the comprehensive measure is supported by the entire craft beverage industry, according to a summary of the bill.
Generally, the Craft Beverage Modernization and Tax Reform Bill of 2019 would implement the following provisions:
- Reduce excise taxes for brewers to provide more cash flow to reinvest in personal business growth;
- Simplify rules for ingredient approval and brewery collaboration;
- Expand the wine producer tax credit;
- Expand allowances for tax purposes on carbonation and alcohol content for certain wines;
- Establish reduced excise taxes for small craft distilleries; and
- Reduce restrictions on tax-free transfers of spirits between distillers.
Additionally, the bill would exempt beverage producers from certain capitalization rules for aged products.
“The craft beverage industry is driven by small businesses that support thousands of jobs and contribute billions in economic output,” Blunt said in the February 6 press release. Currently, the bill has 10 bipartisan cosponsors.
By Jessica Jeane, Senior News Editor