close
Share with your friends

Craft beverage excise tax provisions extended through 2020; wine credit transfers

Craft beverage excise tax provisions extended

The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Treasury Department issued a release noting that the craft beverage modernization and tax reform provisions of the 2017 U.S. tax law (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act”—have been extended for one additional year, through December 31, 2020. The craft beverage modernization provisions are included in the appropriations legislation that was signed into law by the president on December 20, 2019.

1000

Related content

TTB is a bureau of the U.S. Treasury Department that administers provisions of the tax laws that impose a federal excise tax on distilled spirits, wine, beer, tobacco products, cigarette papers and tubes, as well as firearms and ammunition.

The TTB release (December 23, 2019) briefly notes that the extended craft beverage modernization provisions include:

  • Reduced rates of tax and tax credits
  • Tax classification changes for certain wines
  • Transfer of beer in bond between breweries of different ownership
  • Transfer in bond of bottled spirits


TTB also updated a summary of these excise tax provisions on a webpage concerning the Tax Cuts and Jobs Act.

Transfer of certain wine tax credits

In addition to extending the 2017 craft beverage modernization (CBMA) measures, the TTB release explains that the new law retroactively applies the pre-CBMA small wine producer credit transfer provisions to the CBMA wine credits as if those credit transfer provisions had applied since January 2018. 

TTB further noted that beginning January 1, 2020, the alternate procedure authorized by TTB’s Industry Circular 2018-1A will no longer be in effect. TTB stated it will update guidance as well as issue new guidance for bonded wine cellars and wineries that may want to transfer retroactively wine tax credits for 2018 and 2019.


For more information, contact a tax professional with KPMG’s Excise Tax Practice group:

Taylor Cortright | +1 (202) 533 6188 | tcortright@kpmg.com

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal