Congress Expected to Make FET Reduction Permanent
Congress is expected to pass legislation tonight that will extend the Craft Beverage Modernization & Tax Reform Act (CBMTRA) permanently. The extension has been added to the larger year-end legislation necessary to fund the federal government into 2021. If it is not passed today, the US government would go into shutdown, which is unlikely to happen.
CBMTRA reduces the federal excise tax rate of $2.70 per proof gallon for the first 100,000 proof gallons of distilled spirits. It was first passed in 2017, and then extended for one year in 2019. It was set to expire on December 31, 2020.