Tax Minute

NEW TAX BILL (10)

The past two weeks we've been talking about the provisions of the new tax bill that Congress passed late last year. There is a provision buried in the end of the bill that most people haven't heard of that I can only interpret as a nod to myself and my fellow accountants out there that are going to have to learn all of the intricacies of the new bill as it will drive us all to drink. The provision is titled the "Craft Beverage Modernization and Tax Reform". The provision lowered the excise tax on beer for domestic brewers from $7.00 a barrel to $3.50 a barrel on the first 60,000 barrels produced by breweries that brew less than 2 million barrels annually and lowers the excise tax from $18 a barrel to $16 a barrel on the first 6 million barrels for all other brewers and all beer imports. For those of you who enjoy a drink every once in a while but don't like beer, there are similar provisions that lower the excise tax on wine and distilled spirits. Time will tell if this will result in a reduction of the price of alcohol or just greater profits for the manufacturers and importers of beer, wine, and distilled spirits.

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