Hoping to remove regulations from the U.S. tax code that are negatively impacting wine vineyards, craft brewers, and cider and distilled spirits industries, Rep. Leonard Lance (R-NJ) co-sponsored the Craft Beverage Modernization and Tax Reform Act last week.
These segments are of particular importance to Lance’s constituency, which relies on the brewery and distillery industries for its economy. The wine industry in New Jersey generated more than $275 million in 2014 and was responsible for nearly 2,000 jobs.
“There is a strong market for craft beverages and home-grown New Jersey wines,” Lance, who recently toured New Jersey’s Beneduce Vineyards in Pittstown and the Unionville Vineyards in Ringoes, said. “To keep these New Jersey small businesses competitive we have to eliminate out-of-date regulations and high excise taxes that make it difficult for them to expand their businesses. By making these fixes we can help ensure costumers across the country and here in the Garden State enjoy these great products.”
Specifically, the Craft Beverage Modernization and Tax Reform Act would streamline federal regulations in regards to winemaking as well as the brewing of beer, cider and distilling of spirits. The measure also will reform and recalculate the federal excise tax on the products by reducing the per-barrel amount and eliminating cumbersome paperwork that is currently required for craft brewers. Lastly, the bill opens the door for additional ingredient permissions to be included in distilled beverages, creating the opportunity for innovation and the development of new products.