Local Craft Beverage Producers Push for Renewal of 2017 Federal Tax Credit
Craft beverage makers across the country are urging Congress to once again extend a tax credit.
The Craft Beverage Modernization and Tax Reform Act was passed back in 2017 and was renewed again in 2019, but is now set to expire.
The Act has been a major benefit to businesses like Iron Fish Distillery in Thompsonville.
“We’re creating jobs in a very rural county, north Manistee County, Springdale Township,” said co-owner Richard Anderson.
Wineries like Chateau Chantal have also benefitted.
“Depending on the type of volume that you make, it can range from hundreds to thousands of dollars in tax savings. Which as folks in this industry know, we’re very capital intensive business and a lot of that money is extremely valuable to reinvest right into our cellars,” said CEO Marie-Chantal Dalese.
But the future of the tax credit is once again in limbo, set to expire in January. That could leave craft beverage producers facing a tax hike amid the Covid 19 pandemic.
‘It was a 400% decrease in our excise tax, but it has only been renewed on an annual one year basis, and it’s brought us towards parody with beer and wine, and the craft spirits industry in the United States is seeking a permanent reduction in the FET which would be huge to our long term planning,” said Anderson.
Congress is debating bipartisan legislation to extend the tax credit, the question is how long that extension will last.
“Our ability to allocate capital and make planning would be a lot easier if we knew we had a permanent reduction versus just a one year annual extension,” said Anderson.