On the heels of the House passing the 5,593-page Coronavirus Relief Bill the Congress has done the same with a 91 to 7 vote. The finish line is nearing with only one more hurdle to go.
The bill includes a provision to remove one key word that affects distillers of all sizes across the country. The section that refers to the reduction in the Federal Excise Tax – FET for makers of distilled spirits the words “Temporary Reduced Rate” will have one word removed to read simply, “Reduced Rate”. The change will be effective after December 31, 2020.
One step remains and that is to get a final signature from President Trump to make the bill law as a part of the overall 2020 year-end stimulus package.
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More than 2,200 craft spirits makers across the country will be breaking out some special occasion bottles tonight to celebrate this momentous occasion. This means many things that distillers had in mind for 2021 can now shift from dream to plan to execution. Add on top of that a Corona vaccine and distillers can start to see a new horizon coming in 2021.
The Distilled Spirits Council of the United States – DISCUS released the following statement following the passage of year-end legislation that includes the Craft Beverage Modernization and Tax Reform Act of 2019 (S.362/H.R.1175) that makes the Federal Excise Tax Reduction for craft distillers permanent.
“I can guarantee you that across the country craft distillers and their employees will be raising a glass of their finest spirits this evening and toasting their legislators for supporting struggling craft distilleries in need of economic relief,” said DISCUS President & CEO Chris Swonger.
“By making the reduced tax rates permanent for small distillers, Congress is protecting jobs, boosting communities and helping to get these businesses back on a path of stability and growth. We look forward to the president swiftly signing this package into law.”
We’ll keep you posted on events as we near the day and time the President will take the third and final step in this long, long process.
Cheers!
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