Excise Taxes & Craft Beverage Modernization Act

Wine Institute was proud to play a leadership role in the enactment of the Craft Beverage Modernization Act (CBMA) which contained the first reduction in wine excise taxes in nearly 80 years. Starting in 2015, Wine Institute worked closely with the bill’s primary author, Sen. Ron Wyden (D-OR), to craft the wine provisions included in the bill. Wine Institute was the only wine organization to initially oppose the legislation because its original provisions needed improvement. We worked with the bill sponsors to reach agreement on key changes to the wine provisions.

In December, 2020, Wine Institute welcomed a congressional vote to make permanent the lower wine excise tax rates originally enacted in 2017. The omnibus appropriations and COVID-19 stimulus package passed by the House and Senate makes the Craft Beverage Modernization and Tax Reform Act (S. 362/ H.R. 1175) permanent and will provide significant tax relief for all wineries for years to come. These excise tax provisions were set to expire at the end of 2020 had Congress not acted. The Craft Beverage bill reduces excise tax payments for all the 4,000 plus wineries in California which contribute more than $114 billion annually to the national economy.

Wine Institute Statements on Craft Beverage Modernization Act