U.S. Sen. Rob Portman (R-OH) helped lead a bipartisan contingent of 56 senators in calling on leadership to approve before year’s end a bill he introduced to provide tax relief to America’s craft beverage companies.
“We are writing today to ask you to pass the Craft Beverage Modernization and Tax Reform Act (S. 362/H.R. 1175) and make the existing federal excise tax rates for beverage alcohol producers permanent,” wrote Sen. Portman and his colleagues in a Dec. 1 letter sent to U.S. Senate Majority Leader Mitch McConnell (R-KY) and U.S. Senate Minority Leader Charles Schumer (D-NY).
“Every state in our nation is proudly home to craft distillers, brewers, wineries, cideries, and meaderies who without congressional action, face a significant increase in their federal excise taxes on Jan. 1, 2021,” the lawmakers wrote.
Sen. Portman in February 2019 cosponsored S. 362 with bill sponsor U.S. Sen. Ron Wyden (D-OR), while H.R. 1175 was introduced the same month by U.S. Reps. Mike Kelly (R-PA) and Ron Kind (D-WI). S. 362 has 75 other cosponsors while H.R. 1175 is supported by 349 other members of the House of Representatives.
If enacted, the measure would reduce excise tax rates on beer and distilled spirits; permit the transfer of beer between bonded facilities without payment of tax; and increase the amount of the small wine producer tax credit and expand the categories of producers covered by such credit, among other provisions, according to the congressional record summary.
In addition to creating jobs in every state and congressional district, beverage alcohol producers are critical partners to U.S. farmers and agriculture producers, as well as the tourism, manufacturing and hospitality industries, according to the lawmakers’ letter, which noted that in total, these producers support over four million jobs nationwide.
“However, with the economic duress brought on by the COVID-19 pandemic, producers’ businesses have been devastated which would be compounded by an increase in their federal excise taxes,” Sen. Portman and his colleagues wrote.
The lawmakers called it imperative that the legislation be included in the next appropriate legislative package and acted upon before the end of 2020. “This bill is a bipartisan priority and an important economic lifeline to thousands of businesses across the country,” they wrote.