You will pay an additional $10.80 per proof gallon, in 4 MONTHS AND 23 DAYS UNLESS WE GET CONGRESS TO ACT ON S.362 AND H.R.1175 (Craft Beverage Modernization and Tax Reform Act)
If you don’t mind spending more, DO NOTHING. If you hope to continue paying a $2.70 FET, ACT NOW.
Don’t be fooled thinking we already earned a one-year reprieve. We have not. Although the House Ways & Means Committee in June added provisions to extend the FET reduction for one year, it was not brought to a floor vote. Therefore, there is no FET relief beyond December 31, 2019 UNLESS Congress takes further action.
STEPS TO TAKE THIS WEEK
Invite your U.S. Senator and Representative to your distillery during the August recess. Call your local district office and speak to the scheduler. If your elected official isn’t available, invite the legislative or regional director, tax counsel, or chief of staff. Tell him/her you want to show them how you’ve invested your tax savings from the FET reduction.
STEPS TO TAKE NEXT WEEK
Call or visit the legislative director or tax counsel in the Senate and Representatives District office. If they have already cosponsored the bill, THANK THEM. If they haven’t cosponsored the bill, ASK THEM TO COSPONSOR. [There are already 68 Senators and 272 Representatives cosponsoring the bill, but we need more! Find your officials at www.senate.gov or www.house.gov. Find out who has cosponsored the House bill here or Senate bill here.]
HERE’S WHAT YOU COULD SAY
The FET tax relief is working just like Congress thought it would. I’m reinvesting in my business. I’ve hired new employees, purchased equipment, and have even increased purchases from local agriculture. The growth of craft distilling is supporting small business job growth, tourism, rural and urban American economic development, and locally sourced products, the majority of which are made and sourced in the U.S. Please help my small business continue to succeed.
OR, IF YOU PREFER TO WRITE AN EMAIL,
HERE’S WHAT YOU COULD WRITE (find your reps here)
Dear Senator or Representative XXX:
I am a small business in need of your help. Please co-sponsor S.362 or H.R.1175, legislation that would make permanent a reduced Federal Excise Tax (FET) for craft distillers, brewers, vintners and cider makers. It is due to expire on December 31, 2019. This must be renewed BEFORE it expires otherwise, my business will be irreparably harmed.
Furthermore, it is critical that it be extended NOW to allow for certainty in business planning. How can I tell investors or those who helped fund my small operations that I may need to come up with an additional $100,000 or more to continue to operate beyond the end of the year?
I may not understand how DC operates but with well over half of the U.S. House and two-thirds of the Senate cosponsoring the Craft Beverage Modernization and Tax Reform Act, how can you ignore this important legislation?
Craft distilling is a relatively new industry in the U.S. with over 2000 distilleries now employing people throughout the U.S. Before passage of H.R.1 in December of 2017, there was a one-size-fits-all flat tax rate with small distillers paying the same amount as large brands. If you believe in American entrepreneurship, look no further than how we have grown our industry. And, help us continue to grow.
We are re-investing in our businesses, hiring new employees, purchasing American made equipment and increasing purchases from local agriculture. We are supporting main street, adding to U.S. exports, increasing tourism, and revitalizing economically depressed urban areas.
Thank you for your consideration of this request and we hope that you will support this legislation with an immediate push for tax relief. Without the certainty, we are paralyzed from proper business planning.
XXX Distillery, XXXX