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Tax Reform Benefits Craft Distillers

Gin Distillery Room

On Saturday, the U.S. Senate passed a tax bill that will reduced the Federal Excise Tax (FET) for craft distillers. The bill addresses tax related provisions of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), including a significant decrease in the FET for craft distillers. Unlike craft beer and winemakers, craft spirit distillers are not offered a lower FET based on their size. If approved by both the Senate and House, the rate will drop from $13.50 to $2.70 for the first 100,000 proof gallons.

The House did not include an FET reduction in their bill and it is expected to be a major talking point in the revision debate. Over the next week or so, the bill will go to Conference to settle differences between the House of Representatives and Senate, which will then be forwarded to President Trump for final sign off.

Source: American Craft Spirits Association (ACSA), December 2017