TTB announcement: Permanent reduction of excise tax rates for beer and spirits, tax credits for wine

Permanent reduction of excise tax rates for beer

The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a release noting that the temporary reduced tax rates and tax credits originally made available by the Craft Beverage Modernization Act (CBMA) provisions of the 2017 tax law (Pub. L. No. 115-97), the law that is commonly referred to as the “Tax Cuts and Jobs Act” (TCJA), are now permanent.


As noted in the TTB release, the Consolidated Appropriations Act, 2021 (enacted December 27, 2020) made permanent most CBMA provisions of the TCJA, including:

  • Reduced federal excise tax rates on beer and distilled spirits, and certain tax credits for wine
  • Adjusted alcohol content for certain still wine tax classes from 14% to 16% alcohol by volume
  • Lower tax rates for certain meads and low alcohol wines
  • Transfers of beer in-bond between brewers that are not of the same ownership

The legislation also provides new measures, including:

  • Restrictions on the transfer of bottled distilled spirits in-bond
  • Changes to the type of processing activities that qualify for reduced tax rates for distilled spirits
  • Changes to the “single taxpayer” provisions

Read TaxNewsFlash

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

Taylor Cortright | +1 (202) 533 6188 |

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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