The craft distilling industry received great news last week. The U.S. Senate Finance Committee decided to include S. 236, ACSA's legislative proposal to reduce the Federal Excise Tax (FET) on craft producers, those producing 100,000 or fewer proof gallons, in the major tax bill going through Congress. Under the bill, the FET would go from $13.50 to $2.70 per proof gallon. ACSA thanks Senator Rob Portman (R-OH) for making this a priority in the Senate markup with his amendment. We also are deeply appreciative to Senator Ron Wyden (D-OR) and Senator Roy Blunt (R-MO) for the years of work they have put into advancing this issue. Thank you to the many craft distillers that lit up the phone lines and flooded the e-mail inboxes of the Congress over the past few weeks to get this done. 

 

The full U.S. Senate will consider the bill after the Thanksgiving holiday. Of note to distillers, the tax relief is for a period of two years in 2018 and 2019. While that may sound like a short time frame, many tax provisions expire on a regular basis and their proponents have to return to Congress to extend it or have it made permanent. The entire tax bill sunsets for individuals in eight years. We are very confident, that if enacted, our industry can get this lowered permanently. We are a long way, however, from winning the issue entirely. To our disappointment, the U.S. House did not include any tax relief for craft producers. The full House passed their bill last week. If we can maintain our provision in the Senate, the two Houses will have to work out differences. ACSA will continue its efforts in Washington and coordinate with our craft distillers to get this into law in 2018. 

Joining the American Craft Spirits Association means that you'll have opportunities to receive critical updates, learn during our webinar and convention education sessions, compete in our spirits judging, participate in our legislative efforts to reduce the burdensome federal excise tax, and more!