WASHINGTON, DC – U.S. Senator Gary Peters (D-MI), along with Sen. Dan Sullivan (R-AK) and Sen. Kirsten Gillibrand (D-NY) have introduced legislation designed to lower excise taxes for small and craft distilleries.
The Distillery Excise Tax Reform Act would reduce the federal excise tax rate on distilled spirits from $13.50 per proof gallon to $2.70 per proof gallon on the first 100,000 gallons produced per year.
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"Michigan is one of the top states in the nation for small distillery openings in recent years, and we need to ensure these local small businesses are able to get off the ground and grow their businesses," said Peters. "Starting a distillery take a lot of time, effort, and capital, and the high excise tax on craft distilleries makes growing their small businesses more difficult.
According to Peters, the average startup distillery produces 30,000 gallons annually, meaning the proposed tax cut would mean an average savings of $324,000.
Currently beer and wine makers operate with similar excise tax schedules.