Craft Beverage Tax reform made permanent

This may have flown under the radar a little bit, as it’s not exactly going to make national headlines. In the passing of the Covid Relief Bill, the tax benefits from the Craft Beverage Modernization and Tax Reform Act (CBMTRA) were made permanent. I wanted to share, as it’s quite significant for small to medium sized wineries. This couldn’t have been done without the lobbying from Wine America and the support of many wineries across the US.

It seems that way on the surface since the tax rates are lower on the first 30k gallons. But small producers were eligible for a $.90/gallon tax credit before the change. So while small producers pay a little less and moving the line for increasing the rate from 14% to 16% does make sense, its the large operations that now pay a fraction of what they were paying on the first 30k gallons.