CAPE GIRARDEAU, Mo. (KFVS) - The Senate is expected to pass a one-year extension for a Kentucky distiller and brewers tax relief.
It would be for Fiscal year 2020.
The extension of the Craft Beverage Modernization and Tax Reform Act was approved by the House of Representatives and is expected to be voted on by the Senate this week. Once approved, the government-funding agreement will be sent to President Donald Trump to sign.
In addition to keeping a federal excise tax reduction for more than 2,000 distillers and breweries, the funding bill extends the Advancing Growth in the Economy through Distilled Spirits Act that provides fairness for bourbon producers by allowing them to deduct interest expense in the year it is paid, rather than at the end of the bourbon-aging process.
“Kentucky’s craft beverage producers make vital contributions to our economy and preserve our treasured heritage, and I’m proud to lead the extension of this tax relief to support thousands of good jobs in communities across the Bluegrass State,” said Senator Mitch McConnell. “Kentucky’s bourbon industry draws investment and tourism into our Commonwealth, encouraging local economies and boosting pride in our state. My AGED Spirits Act is a pro-growth measure that puts Kentucky’s signature spirit on a level playing field with its competitors at home and abroad. As Senate Majority Leader, I’m prioritizing Kentucky’s interests in Washington, and I look forward to sending our legislation supporting the Commonwealth’s bourbon workforce to the President’s desk.”
The Craft Beverage Modernization and Tax Reform Act was first signed into law by President Trump in 2017 as part of the Tax Cuts and Jobs Act. It was set to expire at the end of December 2019.