What Do Producers Stand to Lose If the CBMA Isn’t Made Permanent?

If the tax break is allowed to expire this year, it could create a domino effect for producers—and the rest of the industry

What Do Producers Stand to Lose If the CBMA Isn’t Made Permanent?
Illustration by Jeff Quinn.

If the tax breaks that the U.S. alcohol industry has gotten used to over the past year expire at the end of 2019, as scheduled, the cost to individual producers could be millions of dollars. But if the Craft Beverage Modernization and Tax Reform Act (CBMA), which was passed by Congress in late 2017, is made permanent—as many legislators and members of the industry are hoping it will be—the federal excise tax (FET) for producers of wine, beer, and spirits would be permanently lowered. This would not only translate into millions of dollars’ worth of savings in the coming years for individual producers, but could also lead to new jobs, new equipment, bigger salaries, and even health benefits for tens of thousands of workers.

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