Wyden, 56 Senators Request Leadership Include Tax Relief For Brewers, Vintners, Distillers In End-Of-Year Bill

Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today led a letter with 56 senators requesting that Senate leadership include the bipartisan Craft Beverage Modernization and Tax Reform Act in an end-of-year legislative package.

“[W]ith the economic duress brought on by the COVID-19 pandemic, producers’ businesses have been devastated, which would be compounded by an increase in their federal excise taxes. Producers have already seen dramatic declines in revenue because of the closures of tasting rooms and restaurants, bars, and other on-premise establishments and cancelations of major sporting events and concerts. These losses ripple throughout the supply chain, affecting farmers, agriculture producers, manufacturers, truck drivers, warehouse workers, and countless others,” the senators wrote. “It is imperative that the Craft Beverage Modernization and Tax Reform Act be included in the next appropriate legislative package and acted upon before the end of the year. As businesses struggle to retain workers and stay open, allowing the current rates to lapse would force many businesses across the country to lay off workers or close their doors permanently.”

In addition to Senator Wyden, the letter is signed by Senators Rob Portman, R-Ohio, Tammy Baldwin, D-Wisc., John Barrasso, R-Wyo., Michael Bennet, D-Colo., Marsha Blackburn, R-Tenn., Cory A. Booker, D-N.J., John Boozman, R-Ark., Sherrod Brown, D-Ohio, Mike Braun, R-Ind., Maria Cantwell, D-Wash., Shelley Moore Capito, R-W.V., Benjamin L. Cardin, D-Md., Susan Collins, R-Maine, Tom Carper, D-Del., Kevin Cramer, R-N.D., Robert P. Casey, D-Pa., Steve Daines, R-Mont., Christopher A. Coons, D-Del., Joni K. Ernst, R-Iowa, Catherine Cortez Masto, D-Nev., Deb Fischer, R-Neb., Tammy Duckworth, D-Ill., Josh Hawley, R-Mo., Richard J. Durbin, D-Ill., John Hoeven, R-N.D., Dianne Feinstein, D-Calif., James M. Inhofe, R-Okla., Kirsten Gillibrand, D-N.Y., Ron Johnson, R-Wisc., Margaret Wood Hassan, D-N.H., Kelly Loeffler, R-Ga., Martin Heinrich, D-N.M., Jerry Moran, R-Kansas, Mazie K. Hirono, D-Hawaii, Mike Rounds, R-S.D., Angus King, I-Maine, Marco Rubio, R-Fla., Amy Klobuchar, D-Minn., Dan Sullivan, R-Alaska, Patrick Leahy, D-Vt., Thom Tillis, R-N.C., Robert Menendez, D-N.J., Roger F. Wicker, R-Miss., Jeffrey A. Merkley, D-Ore., Todd Young, R-Ind., Patty Murray, D-Wash., Christopher S. Murphy, D-Conn., Jacky Rosen, D-Nev., Gary C. Peters, D-Mich., Brian Schatz, D-Hawaii, Jeanne Shaheen, D-N.H., Kyrsten Sinema, D-Ariz., Tina Smith, D-Minn., Debbie Stabenow, D-Mich., Jon Tester, D-Mont., and Chris Van Hollen, D-Md.

Full text of the letter follows:

Dear Majority Leader McConnell and Minority Leader Schumer:

We are writing today to ask you to pass the Craft Beverage Modernization and Tax Reform Act (S. 362/H.R. 1175) and make the existing federal excise tax rates for beverage alcohol producers permanent.

Every state in our nation is proudly home to craft distillers, brewers, wineries, cideries, and meaderies who without Congressional action, face a significant increase in their federal excise taxes on January 1, 2021.

In addition to creating jobs in every state and Congressional district, beverage alcohol producers are critical partners to our farmers and agriculture producers, the tourism industry, the manufacturing sector, and the hospitality industry, including restaurants, bars, and other on-premise establishments. Together, these producers support over four million jobs across the country and contribute immensely to the vibrancy of our economy and communities.

However, with the economic duress brought on by the COVID-19 pandemic, producers’ businesses have been devastated which would be compounded by an increase in their federal excise taxes. Producers have already seen dramatic declines in revenue because of the closures of tasting rooms and restaurants, bars, and other on-premise establishments and cancelations of major sporting events and concerts. These losses ripple throughout the supply chain, affecting farmers, agriculture producers, manufacturers, truck drivers, warehouse workers, and countless others.

It is imperative that the Craft Beverage Modernization and Tax Reform Act be included in the next appropriate legislative package and acted upon before the end of the year. As businesses struggle to retain workers and stay open, allowing the current rates to lapse would force many businesses across the country to lay off workers or close their doors permanently. With the support of 77 Senators and 351 Representatives, this bill is a bipartisan priority and an important economic lifeline to thousands of businesses across the country.

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