After months of rallying their political representatives in Congress, U.S. distillers have another reason to celebrate this holiday season.
The bipartisan, $1.4 trillion spending package that President Trump signed last week included a one-year extension of the Craft Beverage Modernization and Tax Reform Act. Originally passed in 2017, this legislation extends to U.S craft distillers the same break on federal excise taxes already enjoyed by U.S. craft breweries and wineries.
The tax break has has made a big difference in helping grow the U.S. craft industry in recent years.
“We are thankful to President Trump for his swift action in signing into law the year-end spending and tax bill, which contains a one-year extension of the Craft Beverage Modernization and Tax Reform Act,” Chris Swonger, president and CEO of the Distilled Spirits Council of the United States President, said in a release following the passage of the law.
The federal excise tax reduction for distillers now extends through Dec. 31, 2020.
“This bill supports small businesses and helps craft distillers reinvest in their employees, their businesses and their communities,” Swonger adds. “Because of the president’s support, more than 2,000 craft distillers no longer have to worry about waking up to a huge tax increase come January. Instead, they can focus on creating more jobs, buying more grains from farmers and stimulating local economies. We look forward to continuing to work with Congress and the administration on permanently lowering tax rates for craft distillers to give them certainty for growth and planning beyond 2020.”
Without the legislation, the U.S. craft spirits industry was facing a 400% tax hike come Feb. 1, 2020.
