Unless you are living under a rock, you are aware that the reduction in the Federal Excise Tax (FET) is due to expire at the end of this year. Yes: that gives us just over 3 months to do something before the rate returns to $13.50 per proof gallon. Will it?
Not if we can help it.
Legislation to make permanent the FET reduction (Craft Beverage Modernization and Tax Reform Act) continues to gain support in the Senate and House. Additionally, ACSA is aggressively working the top leaders of Congress to get this on the agenda for the fall.
H.R.1175 now has 288 co-sponsors. This is just shy of two-thirds of the U.S. House, which is 290. Most bills don’t have that kind of bipartisan support, so we are bolstered by our progress. In the Senate, there are now 71 Senators on S.362. It takes 60 votes to break a filibuster in the Senate, thus, there is no question that our provision enjoys incredibly broad support in both chambers.
Additionally, the House Ways and Means Committee in late June reported a bill (along with a number of other tax extenders) to continue our FET reduction until the end of 2020. However, this bill has yet to go to the full House for a vote, so it is NOT a done deal.
It is widely believed that we will have the FET relief extended for one or two years, as part of a larger bill dealing with tax provisions that need to be extended. Our bill is not the only one Congress is tackling. Congressional leaders must make a decision this fall to “attach” this to other larger spending measures that keep the government open and funded.
In just the past two weeks, ACSA has met twice with House Ways and Means Chairman Richard Neal (D-MA). We have met with our key Senate GOP sponsor, Senator Roy Blunt (R-MO) and Senator Corey Gardner (R-CO), another key supporter. All are optimistic that our FET relief can get extended. Each directed us to keep up the pressure on the Congress as a whole. We will continue to do so.
What’s up ahead?
A second ACSA national call-in day will take place in October. We are working with our industry “cousins” to select the same day to make the most impact, so stay tuned. Congressional offices will hear from each beverage category: spirits, wine, beer and cider. Suppliers also will help us overload the cell towers, with our collective voices reaching Capitol Hill. We will be noticed. Our voices will be heard.
Also, ACSA will continue to meet with top Congressional leaders. However, we strongly urge all of our Association members to seek meetings back in the U.S. House member’s district or Senate district offices. Finally, we also strongly encourage members to support the ACSA PAC. Click here to learn more.
We will not rest until we make this a permanent part of the tax code.
