Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and Senator Roy Blunt, R-Mo. have introduced legislation to ensure the continued growth of America’s craft beverage industry.
The Craft Beverage Modernization and Tax Reform Act would permanently establish reduced taxes and modernized regulations for brewers, cider makers, vintners and distillers to promote job creation.
In 2016, the brewing industry contributed more than $350 billion to the U.S. economy and directly and indirectly employed about 2.23 million Americans. The wine industry contributed $220 billion and 1.7 million jobs, and spirits contributed more than $173 billion and 1.5 million jobs.
The act would reduce excise taxes, compliance burdens, and regulations for brewers, cider makers, vintners, and distillers and takes a tailored approach to promote job creation in each sector.
Reduced excise taxes for brewers will provide more cash
flow to reinvest in growing businesses. The act also simplifies rules for ingredient approval, removes barriers to brewery collaboration and streamlines outdated inventory rules. It reduces burdens for vintners as well and expands the wine producer tax credit, covers more wineries and promotes regional growth.
Distilleries will see reduced excise taxes for craft distilleries, relaxed restrictions on tax-free transfers of spirits between distillers and reduced tax and compliance burdens.