Last Friday, December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017. Included in the bill is the Craft Beverage Modernization and Tax Reform Act, a legislation that will positively impact the regulations and taxes for craft spirits producers. The Federal Excise Tax (FET) is marked to reduce by a significant amount per gallon for the first 100,000 proof gallons for 2018 and 2019.
There are approximately 1,600 small craft distillers in America. It is an industry that has grown in recent years in response to consumer trends. The tax reform will likely aid its development as smaller producers will no longer be paying the same rates as major corporations. The American Craft Spirits Association (ACSA) is committed to making this a permanent change, citing that it will only help to improve the economy on both a local and national scale.
Source: ACSA, December 2017