That’s because 218 Representatives and 65 Senators – a majority of both bodies – have signed on as cosponsors.
The milestone was celebrated by a coalition of alcohol trade associations including the Brewers Association, Beer Institute, Distilled Spirits Council of the United States, American Craft Spirits Association, Wine Institute, WineAmerica and the United States Association of Cider Makers.
“America’s small and independent craft brewers are proud of the strong bipartisan and bicameral support the Craft Beverage Modernization and Tax Reform Act has received from the United States Congress,” said Bob Pease, president/CEO, Brewers Association.
“The craft brewing industry can be found in nearly every Congressional District in the U.S. and contributes more than 500,000 jobs, including an additional 15,000 directly added at small breweries just last year, showcasing the positive momentum supported by the temporary provisions. The industry is responsible for contributing more than $76.2 billion to the U.S. economy and is a success story for American industry.
“Our champions in Congress see our passion, determination and success, and want to foster and be part of our growth. We are grateful for the support from all those who have co-sponsored this important legislation and are hopeful that it can be enacted this year.”
“The Craft Beverage Modernization and Tax Reform Act marked the first federal excise tax reduction for distilled spirits since the Civil War and has enabled distilleries across the country to invest back in their businesses and communities,” said Chris Swonger, president/CEO, Distilled Spirits Council of the U.S. “Making this legislation permanent would provide stability for distillers in moving forward to generate new jobs and support local agriculture and tourism.”
“We applaud the United States Congress for continuing to recognize the critical importance of Federal Excise Tax reform,” added Margie A.S. Lehrman, CEO, American Craft Spirits Association. “As of August 2018, the number of active craft distillers in the U.S. had grown by 15.5% over the last year to nearly 2,000, yet without permanent and immediate reform, the stability of this vibrant industry, and the industries that surround us – agriculture, tourism and the broader hospitality industry – are bound to be paralyzed.”
“We are grateful to the overwhelming number of lawmakers in the House and Senate who have cosponsored this legislation, which reduces the tax burden on over 4,800 wineries throughout the state of California and who produce 80 percent of U.S. wine,” said Robert P. (Bobby) Koch, president/CEO, Wine Institute. “The savings will allow wineries across America– most of which are small, family-owned businesses – to hire new employees, upgrade equipment, and invest in the future growth of their wineries.”
“Wine is truly an all-American beverage produced in all 50 states. There are now more than 10,000 wine producers with grapes from over 670,000 acres preserving precious agricultural land. The American wine industry’s total economic impact of nearly $220 billion includes 1.7 million jobs and $75 billion in wages,” said Jim Trezise, president, WineAmerica, the national association of American wineries. “We are grateful that so many in Congress see wine as an economic engine as well as a delightful beverage that enhances the quality of life.”
“The cider industry is grateful for the broad support of CBMTRA,” said Paul Vander Heide, president, United States Association of Cider Makers. “Many of our members are small producers with direct investment in agriculture here in the United States. This bill will provide them additional security for their families and capital to invest in growth opportunities for their business.”
The mere fact that a piece of legislation has support of a majority of both houses of Congress doesn’t guarantee it will become law, but it certainly helps.
The legislative push is a result of deal making during the passage of the tax reform act in the first year of President Trump’s term. Unless Congress and the President act, the tax benefits contained in the craft beverage section of the new tax law will expire.