Sen. Ron Wyden, D-Ore., has introduced legislation that would promote continued job creation in the growing craft beverage, cider, wine and distillery industries throughout the country.

The Craft Beverage Modernization and Tax Reform Act, S.1562, introduced Thursday would cut taxes and modernize outdated regulations for craft brewers, cider makers, vintners, and distillers.

Wyden’s proposal would provide a rate of $16-per-barrel on the first 6-million barrels for all brewers and beer importers compared to the current $18-per-barrel.

Wyden’s bill also defines small brewers as those producing less than 2-million barrels annually, with the application of an excise tax of $3.50-per-barrel for the first 60,000 barrels, jumping to $16 after that. The measure also expands the excise tax credit for small wine producers.

Wyden’s legislation builds on a consensus reached among multiple industry groups. And it builds on a number of popular proposals including the Small BREW Act sponsored by Senators Ben Cardin (D-Md.) and Susan Collins (R-Maine); the Fair BEER Act sponsored by Senators Roy Blunt (R-Mo.) and Tammy Baldwin (D-Wisc.); the Distillery Excise Tax Reform Act sponsored by Senator Gary Peters (D-Mich.);  the CIDER Act sponsored by Senator Charles Schumer (D-N.Y.);  the AGED Spirits Act sponsored by Senate Majority Leader Mitch McConnell (R-Ky.); and the Craft Beverage Bond Simplification Act, which was approved by the Finance Committee earlier this year.  In addition, Wyden’s legislation includes a variety of new proposals to reduce tax and regulatory burdens for each industry.

Read more about this new legislation on Wyden’s website.

Written by Patrick Wirth, CPA, CVA | Partner
Posted in News, Tax