The House Ways and Means Committee announced yesterday that on Thursday, June 20 (tomorrow) it will consider legislation to extend until 2020 the lower FET for craft distillers. The legislation will be part of a larger effort to extend a number of provisions in the tax code that expired in 2018 and 2019. This is the first time the House Ways and Means Committee has independently worked on legislation impacting craft distillers.
Also important, the Joint Committee on Tax (JCT) which “scores” legislation on the impact to the federal budget reduced its potential cost by nearly 75%, making our bill much less impactful for any lost revenue to the TTB. This will help in our effort to make it permanent.
This is only the first step in a journey this year to get our tax provisions made permanent or extended. This must still go the full House and be reconciled with the U.S. Senate, but it is good news for craft distillers.