US alcohol producers benefit from $900bn stimulus package 22nd December, 2020 by Phoebe French
The US Senate has approved a stimulus package worth almost US$900 billion, with alcohol producers set to benefit from a permanent excise tax reduction.
The senate voted 92-6 in favour of the economic relief package yesterday (21 December) after the House of Representatives also voted through the measure earlier in the day.
The 5,593-page bill will now be sent to President Trump to be signed into law.
Among the provisions are a permanent excise tax break for beer brewers, distillers and wine producers. It means that the tax breaks which featured in the Craft Beverage Modernization and Tax Reform Act (CBMTRA) will now continue.
U.S. Congress To Pass the Craft Beverage Modernization and Tax Reform Act
As the U.S. Congress is set to pass the latest in COVID-19 stimulus relief, the
Craft Beverage Modernization and Tax Reform Act (CBMTRA) was added to this bill that will make the existing federal excise tax rates for small and independent breweries permanent. News arrived late Sunday night that both the U.S. House and U.S. Senate have agreed upon a $900 Billion COVID relief package that also includes CBMTRA as part of it.
The current Federal Excise Tax (FET) rates for small and independent breweries were set to expire on December 31, 2020. If no action is taken and the current FET expires, the rate could increase as much as 100%. On top of this, breweries in Oregon will likely face a state tax increase as well for the 2021-23 biennium that is being led by the Oregon Health Authority.
Craft Beverage Modernization & Tax Reform Act Included In Year-End LegislationDecember 21, 2020
Congress is set to make tax cuts for drinks producers and importers permanent with the inclusion of the Craft Beverage Modernization & Tax Reform Act in its year-end legislative package. Both houses of congress are expected to vote on the bill today.
“This is a huge sigh of relief for struggling craft distillers who have been on pins and needles awaiting the outcome of these discussions,” said DISCUS president and CEO Chris Swonger. “While not yet a done deal, making the reduced tax rates permanent will serve as an economic lifeline for beleaguered small distilleries that have had their tasting rooms shut down for months.”
Congressional Leaders Announce Agreement to Make Benefits Permanent December 20, 2020
WASHINGTON, D.C. Wine Institute welcomes tonight’s congressional action to make permanent the reduction in wine excise taxes originally enacted in 2017. The comprehensive omnibus appropriations and COVID-19 stimulus package announced by Congressional leaders includes permanence for the Craft Beverage Modernization and Tax Reform Act (S. 362/ H.R. 1175), which provides significant tax benefits for all wineries. The House and Senate are expected to vote on the legislation on Monday.
“Wine Institute has worked tirelessly over the last five years to secure these critical benefits for our wineries and make them permanent,” said Robert P. Koch, President and CEO of Wine Institute. “These tax savings will allow our predominantly small, family-owned wineries to invest in their employees and facilities when its needed most as wineries struggle to cope with the pandemic and the re
Tax cut for distillers to be made permanent 21st December, 2020 by Owen Bellwood
The Craft Beverage Modernization and Tax Reform Act will be made permanent after Congress included the duty cut in its year-end funding legislation package to help businesses recover from the pandemic.
The US committee on finance has extended the Craft Beverage Modernization & Tax Reform Act
Senate finance committee ranking member Ron Wyden, who sponsored the bill’s reading in Congress, said in a statement yesterday (20 December) that the Craft Beverage Modernization and Tax Reform Act (CMTRA) for distillers will be made permanent. The move comes 12 months after the tax cut gained a one-year extension and was due to expire on 31 December 2020.