An Early Christmas Gift For Craft Distillers

Yesterday, the United States Congress passed legislation important to America’s nearly 2,000 craft distillers. As part of a broader spending bill, the Craft Beverage Modernization and Tax Reform Act (CMBTRA) was not only renewed for 2021, but made permanent in this bill. President Trump’s office has indicated he will sign the legislation when it arrives on the President’s desk.

Passage of CBMTRA avoids a 400% tax increase to craft distillers that would have taken effect on January 1, 2021. When originally passed in 2017, the lower Federal Excise Tax (FET) rates were in force for 2018 and 2019. These rates were renewed by Congress and President Trump for 2020. By now making these rates permanent, owners of craft distillers can plan their growth with more certainty because they will know how much FET to include in their budgets.

Details of this legislation and its importance to craft distillers was shared in this article. On behalf of craft distillers from sea to shining sea, thank you to everyone who took the time to contact their members of Congress in support of this legislation. This will certainly help our friends in craft distillation have a much merrier Christmas and a happier 2021 and beyond.