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ACT NOW: Join Wine Institute’s Day of Action to Save Craft Beverage Tax Benefits

Tax Savings Will Expire in 30 Days if Congress Does Not Pass This Legislation

Wine Institute is working aggressively to secure a permanent extension of the Craft Beverage Modernization and Tax Reform Act (S. 362 / H.R. 1175) before the tax benefits expire on Dec. 31, 2020. The legislation has overwhelming support from 77 senators and 351 representatives in Congress, yet due to the pandemic and recent election, Congress has not responded to date. California wineries have saved over $225 million dollars in excise taxes since the bill went into effect in 2018.

We need your help in the final days of the legislative session to help get this done. It only takes 2-3 minutes for your voice to be heard.

Please join our Day of Action this week and urge Congress to enact a permanent extension before the end of the year. Click on the button below to call, email, or tweet a message to California’s senators and your local representative. Please invite your employees and business partners to join our call to action throughout the next week.


Key Provisions of S. 362 / H.R.1175 for Wine:

Applies the excise tax credit to all wineries.
All wineries regardless of production size may continue to claim a credit of between $.535 and $1 per gallon on the first 750,000 gallons of production. The total value of the full credit is $451,700 per year, based on producing the full 750,000 gallons. Wineries will be able to claim the credit on wine that has been transferred in-bond to another bonded winery or bonded wine cellar that acts as a fulfillment center.

Allows sparkling wine to qualify for the tax credit.
Sparkling wine will be eligible to claim the tax credits listed above.

Taxes wine containing up to 16% ABV at $1.07 per gallon.
Wines with 14% to 16% Alcohol by Volume (ABV) were formerly taxed at $1.57 per gallon.

Increases the carbonation threshold in low alcohol wines.
Allowable carbonation in wines with 8.5% ABV or less is increased from .392 grams to .64 grams of carbon dioxide per hundred milliliters.

Wine Institute