Indiana brewers and consumers will be part of the tax cuts if Congress passes the bill.
Here’s what the tax cut proposals for the beer and wine industry looks like:
Tucked away in the Senate’s tax bill is the “Craft Beverage Modernization” provision, which would cut federal excise taxes on alcohol producers, particularly small brewers.
The Senate bill would make several changes to taxes on beer, liquor, and wine that account for this dramatic increase. The changes would last up to 2019 and are subject to renewal:
It reduces the beer tax from $7 to $3.50 per barrel on first 60,000 barrels and $18 to $16 per barrel on the first six million barrels.
The bill changes the liquor tax rate from a fixed to tier system. It lowers the current liquor tax rate from $13.50 to $2.70 per proof gallon on the first 100,000 proof gallons. Taxes increase to $13.34 on the next 22.1 million gallons. Anything above that is taxed at the current rate of $13.50.
Extends wine tax credits to all domestic wineries whereas it is currently limited to small producers; the tax credit ranges between $0.54 to $1.00 per gallon.
H/T Think Progress