Big and small US distillers hail new tax bill

Members of the US spirits industry have hailed the introduction of a new bill that would significantly cut tax for both large and small distillers.

Discus and the ACSA successfully lobbied for the introduction of a new bill that would significantly cut spirits tax in the US

House representatives Todd Young and John Yarmuth have put forward a new bipartisan bill, titled Distillery Innovation and Excise Tax Reform Act of 2015.

If approved, the legislation will see the current tax rate of US$13.50 per proof gallon to US$2.70 per proof gallon on the first 100,000 gallons for all distillers, regardless of size. After the 100,000-gallon threshold has been passed, the bill sets a rate at US$9.00 per proof gallon.

The legislation has been supported by both the Distilled Spirits Council of the US (Discus) and the American Craft Spirits Association (ACSA), both of which also claim the bill should apply to imported and domestic spirits.

“It is significant that the distillers of all sizes are united behind this important hospitality industry legislation,” said Distilled Spirits CEO Peter Cressy, who will retire from the role later this year.

“We thank the sponsors for recognizing the economic impact passage of this bill will have for our industry.”

Discus and the ACSA join forces to lobby for a reduction on spirits federal excise tax in March this year, claiming that “industry infighting” should be renounced.

ACSA president Tom Mooney, from House Spirits in Portland, Oregon, added: “This bill will help create jobs across America for the rapidly growing distilling industry. It will translate into real economic benefits and jobs for hundreds of small distillers and their surrounding communities.”

Earlier this month, UK trade associations welcomed a 2% cut to spirits duty following a joint lobbying effort.