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The Craft Beverage Modernization and Tax Reform Act details

The bill contains the following provisions for wine:

  • It expands tax credits for all wineries.
  • The old system would be replaced by a new tiered credit system for wine produced domestically:

$1.00 credit for the first 30,000 wine gallons produced

$0.90 credit for the next 100,000 wine gallons produced (30,001 to 130,000)

$0.535 for the next 620,000 wine gallons produced (130,001 to 750,000)

All wine produced over 750,000 gallons will be taxed at the regular rate

  • Removes the existing prohibition against claiming the credit for naturally sparkling wines
  • Expands the alcohol threshold for table wine from 14 percent to 16 percent for the lowest tax rate
  • Increases carbonation tolerance levels for low alcohol wines

Source: WineAmerica, October 2017