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Archive for June, 2018

How Distilleries and Spirits Brand Owners Can Take Advantage of the New Tax Laws

In late 2017, Congress passed the Craft Beverage Modernization and Tax Reform Act (CBMTRA) as part of the Tax Cuts and Jobs Act of 2017. The CBMTRA cut the Federal Excise Tax (FET) on distilled spirits from $13.50 a proof gallon to $2.70 a proof gallon for the first 100,000 proof gallons (approximately 52,631 9-liter cases of 80 proof spirits) removed from bond for consumption or sale in 2018 or 2019.

The rules for distilleries to qualify for the reduced FET are fairly straightforward. To take advantage of the reduced FET on their first 100,000 proof gallons removed from bond in 2018 and 2019, a distillery must distill or processthose spirits. TTB’s definition of “process” is somewhat broad, but includes mixing, rectifying, and bottling. Therefore, a distillery who purchases whiskey or vodka in bulk, and bottles it at their facility, should be eligible to pay the lower FET rate, provided they have not removed more than 100,000 proof gallons in the current calendar year, and the current calendar year is either 2018 or 2019.

Read the rest of this article here.

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alcohol beverages generally, distilled spirits


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Time

I always sort of knew my wife would end up in Time Magazine, with Donald Trump and a bottle of whiskey. The Time article about Margie Lehrman, ACSA, whiskey — and even George Washington — is here.

The key part says:

What is bad news for consumers is worse news for distillers in the U.S. says Margie Lehrman, executive director of the American Craft Spirits Association — especially small and medium-sized businesses. “The EU is a very important market for craft producers who have really boomed in recent years, creating 20,000 new jobs,” she says. “The President should consider the impact not only on the companies but also on the communities that they’re working in. These distilleries have often brought life and even tourism to run-down parts of towns, that previously people just didn’t go to.”

Lehrman also questions the sincerity of Trump’s “America First” rhetoric. “It’s a shame whiskey has been caught up in this because if you go back to the roots of our country, with George Washington having a distillery at Mount Vernon, it’s really American heritage that’s being attacked here,” she says. “We urge the E.U. and the U.S. to work together to fix this and a stance that is mutually beneficial.”

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