WineAmerica has long taken a leadership role in advocating for the Craft Beverage Modernization and Tax Reform Act (CBMTRA) and learned that the essential tax benefits of CBMTRA will be made permanent as part of the year-end omnibus and Covid-19 relief package announced by Congressional leadership.
The CBMTRA was initially enacted in 2017 and was set to expire on December 31, 2020.
The CBMTRA reduces federal excise taxes for all American wineries. In a time of uncertainty, the new certainty that these tax rates will remain in effect will now allow the wineries to focus proactively on the challenges which lie ahead.
“After WineAmerica’s years of work to make permanent the federal excise tax rates under the Craft Beverage Modernization and Tax Reform Act, we are delighted that it has finally been achieved,” said Jim Trezise, President of WineAmerica.
“This newfound certainty about future tax rates will let wineries confidently plan future investments in employees, facilities, and marketing, benefiting the national, state, and local economies. We thank our beverage coalition partners and the hundreds of supporters in Congress for this major breakthrough. Diversity is our Strength, Unity is our Power.”
The CBMTRA had unprecedented bipartisan support in both chambers of Congress, including 77 Senators and 351 Representatives who became cosponsors. WineAmerica would like to specifically thank the following House Members and Senators for their support and leadership in making the CBMTRA permanent:
House Speaker Nancy Pelosi (D-CA)
House Minority Leader Kevin McCarthy (R-CA)
House Ways and Means Chairman Richard Neal (D-MA)
House Ways and Means Ranking Member Kevin Brady (R-TX)
Co-Chair of the Congressional Wine Caucus, Rep. Mike Thompson (D-CA)
Co-Chair of the Congressional Wine Caucus, Rep. Dan Newhouse (R-WA)
Lead House sponsor of the CBMTRA, Rep. Ron Kind (D-WI)
Lead House co-sponsor of the CBMTRA, Rep. Mike Kelly (R-PA)
Senate Majority Leader Mitch McConnell (R-KY)
Senate Minority Leader Charles Schumer (D-NY)
Senate Finance Chair Charles Grassley (R-IA)
Senate Finance Ranking Member and Lead Senate sponsor of the CBMTRA, Ron Wyden (D-OR)
Lead Senate co-sponsor of the CBMTRA, Senator Roy Blunt (R-MO)
The CBMTRA reduces federal excise taxes for all American wineries. In a year of uncertainty, the certainty of knowing federal taxes won’t increase will allow the industry to focus on the challenges that the new year will bring.
The House and Senate are expected to vote on the legislation today, with the President’s signature following soon after.
Tags: WineAmerica, CBMTRA
