Northern Michigan Craft Beverage Producers Hoping for Tax Cut Extension
Makers of craft beverages across the country are waiting to see if Washington will renew a major tax credit that’s set to expire at the end of the year.
The tax cut was passed as part of the Tax Cuts and Jobs Act back in 2017.
Distilleries could see a 400% tax increase and wineries and breweries would lose significant tax breaks.
The Craft Beverage Modernization and Tax Reform Act was signed just as Iron Fish Distillery co-owner Richard Anderson was making major moves with his business.
He says the tax cut allowed him to invest around $775,000 and grow his full time staff.
“For us this has been a game changer. This tax incentive, this tax decrease really came right at a time when we needed to take some risks, and invest in the business and hire people and so it was, I think, as intended, worked here at Iron Fish,” said Anderson.
The tax cut also helped wineries like Chateau Chantal on Old Mission Peninsula.
They were also able to get a tax cut on sparkling wine.
“When the tax credit applied to sparkling wine that was very beneficial to us. We make four different types of sparkling wine. Michigan is also known for making a lot of great sparkling wine, so that was a great boom to us here locally in particular,” said CEO Marie-Chantal Dalese.
But these tax cuts are set to expire at the end of the year.
Bi-partisan legislation to extend them is currently stuck in both the house and senate, leaving their future unknown.
“It certainly provides a great resource for startup companies that are using Michigan grown produce and agriculture to fuel the craft beverage economy,” said Dalese.
“This is an industry that Michigan can be proud of, it’s growing, it’s hiring people, it’s making world class spirits and we’re looking forward to its continued growth and being part of that,” said Anderson.