Chief executive officers from eight major beverage alcohol associations urged immediate passage of the bipartisan Craft Beverage Modernization and Tax Reform Act, S. 362/H.R. 1175 (CBMTRA) to keep craft distillers, brewers, vintners, cider producers and mead makers from suffering a devastating tax hike in January.
“Now, weeks away from a federal excise tax increase, producers fear their businesses will not be able to shoulder another burden after such a challenging year,” said the coalition. “Unlike other tax provisions, absent Congressional action, the increase in federal excise taxes will have an immediate impact on the industries.”
In 2018, the beverage alcohol industry supported more than 5.4 million jobs across the country and generated more than $562 billion in economic activity.
“This year, producers across the country have seen dramatic declines in revenue, suspended production, furloughed or laid-off employees, and closed their doors to visitors,” the coalition said. “These changes have impacted not only the livelihoods of their employees – but also the livelihoods of farmers, distributors, truck drivers, warehouse workers and countless others connected to the industries.”
Introduced by Senators Ron Wyden (D-Ore.) and Roy Blunt (R-Mo.) and by Reps. Ron Kind (D-Wis.) and Mike Kelly (R-Pa.), CBMTRA will make permanent the reforms enacted in 2017 that create a fair and equitable tax structure for brewers, winemakers, distillers and importers of all beverage alcohol. The bill currently has 351 cosponsors in the House and 77 in the Senate.
The letter also featured comments from owners of small distilleries, breweries and wineries underscoring the urgency of the legislation’s passage.
The coalition letter was signed by CEOs from the Beer Institute, Brewers Association, Distilled Spirits Council of the United States, American Craft Spirits Association, Wine Institute, WineAmerica, the American Cider Association and American Mead Makers Association.