The Senate passed, 92-6, a $900 billion Covid relief bill along with a $1.4 trillion spending bill to fund the government through September. President Trump is expected to sign it, the White House said.
Buried in the 5,593-page piece of legislation are two provisions of key importance to the alcohol beverage industry:
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- The lower federal excise tax rates in the Craft Beverage Modernization & Tax Reform Act are made permanent, and
- Restoration of full expensing for business meals, meaning business people will be able to write off the cost of meals consumed in restaurants.
Both provisions are of enormous help to the bev/al industry and especially to smaller operators. The lower tax rates contained in the Craft Beverage Modernization & Tax Reform Act section will help craft breweries and distillers as well as boutique wineries. The provision makes permanent the lower tax rates they have enjoyed since 2018, avoiding what could have been as much as a 400% increase in excise taxes due Jan. 15.
Bev/al trade associations in every industry sector had worked strenuously to make the Craft Beverage Modernization & Tax Reform Act provisions permanent.
The business meal provisions for 2021 and 2022 are meant to throw a lifeline to restaurants which have suffered severely from Covid-related closures ordered by state and local governments since the pandemic began in March. Under current law, those write-offs are subject to a 50% limit.
Wine & Spirits Wholesalers of America noted earlier in the day that the business-meals provision benefits not only restaurant operators but also those who work in the establishments, including waitstaff, cooks, cleaners, etc., as well as distributors and those who produce and supply food to eateries.
“Common-sense solutions like (the business-meal deduction) are no-brainers and will help save millions of restaurants across the nation from going under,” said Sen. Tim Scott (R-S.C.), who had sponsored a separate bill on it.
The overall package all contains $600 checks for many Americans — there is a limit based upon income — and a $300-a-week supplement to unemployment insurance. It also includes an additional $40 billion to buy and distribute Covid vaccines as well as $22 billion for testing and tracing.