WTOP aired a story about our efforts, along with other distillers and the Distilled Spirits Council, to seek federal excise tax (FET) relief for small producers.  The story highlights the fact that spirits pay a proportionally larger percentage of excise taxes than do our counterparts in wine and beer, and seeks relief on the first 100,000 proof gallons produced.  

Harris said he believes his small distillery could add employees and stir tourism if Congress extended to distilleries the federal excise tax breaks currently given to craft beer makers and small wineries. Right now, Harris and other craft distillers pay the same federal excise tax rate as their big competitors such as Jack Daniels and Jim Beam.

“It’s very hard for smaller companies like ours to compete and to do innovative, new products like we’re doing,” Harris said.

Distillers are asking Congress to cut the federal excise tax on the first 100,000 gallons of spirits produced to $2.70 per gallon for all distillers. The rate would then rise to $13.34 per gallon on alcohol produced after the first 100,000 gallons.

Read the full story, here.