A permanent reduction in the federal excise tax for alcohol producers and importers is a signature away.
The U.S. House of Representatives and U.S. Senate have both signed off on the $900 billion economic relief package, which includes language from the Craft Beverage Modernization and Tax Reform Act (CBMTRA), as well as additional Paycheck Protection Program (PPP) funding for small businesses, among other measures.
President Donald Trump is expected to sign the legislation in the coming days.
Jim McGreevy, president and CEO of national trade group the Beer Institute, hailed the passage of the legislation as “a first step to helping the bar and restaurant industry recover.” However, he stressed the need for additional support for the hospitality industry, which has been devastated by closures of on-site sales during the COVID-19 pandemic.
“With the passage of permanent alcohol excise tax relief by the House and the Senate, brewers and beer importers and the millions of American jobs that depend on the beer industry, from farmers to restaurant workers, will have long-term tax certainty that will help them weather the COVID-19 pandemic,” he said in a press release. “I encourage President Trump to quickly sign this legislation so the beer industry can continue to provide jobs to millions of Americans.”
The federal excise tax on alcohol was slated to expire at the end of 2020. An extension or permanent change to the temporary tax cuts has been a top legislative priority for beer industry trade groups the Beer Institute and Brewers Association.
Read Brewbound’s coverage of the relief package here: Congress Moves to Make Federal Excise Tax Cuts Permanent as Part of $900 Billion Relief Deal.