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Bill to Reduce Federal Excise Taxes on Alcohol Receives Support

Rows of wooden cognac barrels in cellar

Serious reductions on federal excise taxes on alcohol are being considered by Congress.  For breweries, federal excise taxes would be reduced to “$3.50 per barrel on the first 60,000 barrels for domestic brewers who make fewer than 2 million barrels per year… $16 per barrel on the first 6 million barrels for all other brewers.” The act would also properly define cider, which would allow ciders to be taxed at 22.6 cents per gallon instead of categorizing them under sparkling wine’s $3.40 per gallon tax.  In addition, distilleries would see taxes decrease from $13.50 to $2.70 per gallon on their first 100,000 gallons produced.  Home distillers would be exempt from federal taxes entirely.  While it is still uncertain whether the Craft Beverage Modernization and Tax Reform Act of 2015 will be passed, it has already received some noteworthy support.  51 US senators already support the bill, but 9 more would be needed for real consideration to pass it.  If the bill is eventually signed into law, it will be a huge win for the alcohol industry in the United States.

Source: http://www.theamericanconservative.com/articles/congress-may-lower-taxes-on-drinks/