Distillers and brewers across the country are rejoicing as the President signed a permanent extension of federal excise tax relief into law. Distillers had been facing a 400% tax increase on January 1, 2021, as FET rates were set to revert back to $13.50 from $2.70 for the first 100,000 proof gallons annually.
The Craft Beverage Modernization and Tax Reform Act (CBMTRA) was supported by over 350 members of the House of Representatives and 75 members of the Senate and the extension was included as part of an omnibus and stimulus package for COVID relief. For the American Craft Spirits Association, the legislation marks the culmination of five years of lobbying Congress for FET relief.
“Finally, this permanent FET reform eliminates what has become a cycle of uncertainty around temporary or even permanent reform,” said Mark Shilling, ACSA Past President. “Our industry has a long road ahead as we crawl back from the impact of COVID-19 on our small businesses, but permanent FET reform is one massive roadblock we no longer need to face.”
Source: ACSA and Yahoo! Finance, December 2020