The Georgia Wine Producers Board of Directors voted to join Wine America in supporting the Craft Beverage Modernization and Tax Reform Act. In December 2017, the Tax Cuts and Jobs Act was passed and signed. The tax reform law modernized the federal excise tax system for breweries, wineries, and distilleries for the first time in a generation.
Section 13804 of the Tax Cuts and Jobs Act reformed the credit system for producers of wine. Now, wine producers received a credit of $1 per gallon of wine up the first 30,000 wine gallons, 90 cents per wine gallon between 30,001 and 130,000 wine gallons, and 53.5 cents per wine between 130,001 and 750,000 wine gallons.
Separately, Section 13805 of the 2017 tax reform law also expanded the alcohol threshold for still wine to be subject to the $1.07 per wine gallon federal excise tax from 14 percent alcohol by volume to 16 percent. Section 13806 increased carbonation tolerance levels of artificially carbonated wine and sparkling wines from 0.392 grams of carbon dioxide per hundred milliliters of wine to 0.64 grams, allowing these products to be taxed at $1.07 per wine gallon rather than $3.30 to $3.40, which was the case under previous law. [Sources: Freedomworks.org & WineAmerica.org]
If congress doesn’t act, this important law will lapse at the end of this year and new brewers, vintners, distillers that have opened since the Tax Cuts and Jobs Act became law will see a tax increase at the beginning of 2020. Senator Johnny Isakson has already co-sponsored this legislation. We have created a sample letter for you to send to Senator David Perdue to urge him to support this legislation.
Georgia Wine Producers will be sending a letter from our organization to Senator David Perdue requesting his support of this legislation. We will also be sending a letter to Senator Isakson thanking him for his support of this legislation.
If you would like to view this legislation, Click Here.