Craft Distillery Community Benefits From Tax Reduction

The craft distillery community is finally getting a tax break they say has been a long time coming.

Posted: Apr 27, 2018 6:30 PM

MEDFORD, Ore. -- The craft distillery community is finally getting a tax break they say has been a long time coming. The tax reduction came with the republican tax bill that went into effect earlier this year. 

Bobby Townsend, Vice President of the Organic Alcohol Company in Ashland, said this is the first time the distilled spirit tax has been reduced in hundreds of year.

"Doesn't affect us directly, but our customers who are manufacturers of products that use alcohol see significant savings, tens of thousands of dollars," Townsend said. 

The Craft Beverage Modernization and Tax Reform Act means an 80 percent reduction in Federal excise taxes. 

"Really allows for them to make the business decision on hiring new people, being more profitable, directly as a result of this tax," Townsend said. 

It lowers the federal excise tax from $13.50 to $2.70 per proof gallon for the first 100,000 gallons.

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