Congress Extends the Craft Beverage Modernization and Tax Reform Act Through 2020
The Craft Beverage Modernization and Tax Reform Act (CMBTRA) has been extended through December 31, 2020.
The bill was passed as part of a package of tax extenders that was included as an amendment to the Further Consolidated Appropriations Act of 2020. WineAmerica applauds the House and Senate for coming together to extend these credits through the end of 2020, avoiding costly increases for the entire American wine industry.
Earlier this week, the House of Representatives passed the bill that carried the extension by a bipartisan vote of 297 to 120. The bill was then sent to the Senate for approval. The Senate passed the bill by a vote of 71 to 23, sending it to the President’s desk for his signature, which is expected.
“This is a major victory for the American wine industry, and a huge relief for wineries of all sizes across the country,” said Marty Clubb, owner/winemaker of L’Ecole No. 41 in Walla Walla, Washington who is the current Chair of the WineAmerica Board of Directors. “While there is more work to be done, this extension is a major step forward.”
WineAmerica has been working throughout the year with our colleagues in the beer, cider, mead and spirits sectors on the Craft Beverage Modernization and Tax Reform Act. Our ultimate goal has been to secure permanence on this essential tax savings that have allowed for substantial savings and spurred reinvestment from wineries of all sizes. The larger CBMTRA currently has 74 Senate sponsors and 332 in the House. We will continue to work with our coalition partners to secure either permanence or a long term extension.
“WineAmerica just demonstrated its incredible value to the American wine industry,” said Jim Trezise, the organization’s President. “The powerful combination of daily work by our staff and lobbyists, national grassroots advocacy, and collaboration with other beverage associations was the perfect recipe for success.”
The new extension of the Craft Beverage Modernization and Tax Reform Act also includes a very important fix particular to the wine industry. Bonded wine cellars and fulfillment houses will once again be eligible to take the credits on the wine in their facilities, and bond-to bond transfers between wineries will also be eligible for the credits. The correction is a retroactive fix, and will be retroactive to January 1, 2018.