Fort Wayne, Ind. (WANE) – The clock is ticking to pass federal law that would save distillers and brewers a dramatic amount of money. The bill would make a recent tax cut that these companies are currently enjoying permanently. The deadline for the expiry is December 31st. If the U.S. Congress doesn’t expire, tax rates will revert back to what they once were.
The tax cut was part of a tax reform act that was passed in December 2017. Current Craft Beverage Modernization and Tax Reform Act must be permanent by the end of the year if places like the Three Rivers Distilling Company are to avoid dramatically higher tax rates.
“For us personally, it means tens of thousands of dollars a year that we pay more taxes,” said President Marla Schneider.
The tax rate would increase by 500 percent. Currently the rate is $ 2.70 per proof gallon (the industry standard for measurements). It would go back to $ 13.50 if the bill failed.
For craft breweries, federal excise tax would rise from $ 3.50 per barrel to the first 60,000 barrels to $ 7.00.
Schneider said that all of the money lost due to higher taxes would also have a significant impact.
“Ultimately, we would have to raise the price of our alcohol that we sell to our wholesalers, and they will raise the price of the liquor stores and the liquor stores will raise the price of the consumers,” she said. “So it will work across the board if we actually implement this tax increase.”
Indiana Senators Todd Young and Mike Braun, both Republicans, support extending the tax cut. Young sent a letter to Senate leaders on December 1 stating 77 senators and 351 officials in support.
“It’s very important to me that we don’t impose new taxes on our distillers and brewers,” said Young. “I think we have a good chance of making sure Three Rivers Distilling and Mad Anthony Brewing don’t get any new tax increases. Fortunately, over half the U.S. Senate is backing my efforts to ensure you don’t suffer new taxes during a global pandemic towards the end of the year. We will try to help you. Help is on the way. “
Young said Congress has been hectic since the November election. He expects the bill to be passed by the end of the year as part of a larger package of proposed laws.