The Small Distillery Excise Tax Act (HR 777)

[StraightNoChaser]

Just read about this on Facebook. I'm sure this is one piece of legislation we could all stand behind!

The Small Distillery Excise Tax Act (HR 777) will enhance expansion and encourage growth of the small, craft spirits manufacturing industry in the United States, creating a tax credit similar to that already available to small beer and wine producers.

In a nutshell, this will lower the excise tax of $13.50 per proof gallon to $2.70 for any distiller producing less than 65,000 gallons annually.

Facebook support page: http://www.facebook.com/SupportAmericanCraftDistilling?sk=info

[Bourbon Boiler]

I don't know what the magnitude of this tax break really means to the distillers, but it certainly wouldn't hurt anything. I'd like to see micro-distilleries become a tourism generator like small wineries have become in some regions.

[StraightNoChaser]

At the very least, I hope the savings are passed down to the consumer for these boutique spirits that are popping up everywhere.

[emr454]

Anything that makes it easier to make more whiskey, I suppose I support it (as we all here should!).

[tmckenzie]

It will be a big boost for the small folks. I agree with the tourism idea. We are right on the Seneca lake wine trail and we can see 400 folks on a good saturday. One of the biggest mistakes being made by small disitllers I think is locating an an industrial park. No tourism there.

[cowdery]

If this passes I will immediately set up a chain of nominally independent, very efficient NGS (i.e., vodka) distilleries, each with a capacity of 64,999 gallons. I should be able to flood the market with cheap vodka at a retail price point of about half what the cheapest vodka sells for now within days of this law's enactment. Because it will be like a license to print money, I shouldn't have any trouble getting investors. Problem is, I'll also have tons of competitors. Small artisan distillers will, of course, get screwed.

The FET is such a huge part of the cost of producing distilled beverages that a break this big provides an irresistible incentive to turn the law to a purpose for which it was not intended. I don't think this has any chance of passage for that reason.

Something more like a 25% break, which would take it to $10.13, would be some help but probably wouldn't provide enough incentive for a scenario such as the one I described.

More likely is an FET increase for all. We're broke, remember.

The interesting thing is that because the FET is based on proof volume, not price, the increase will be much less noticeable in a $40 bottle than it will be in a $20 one, which will actually be good for the micros.

[tmckenzie]

good point Chuck. I had not thought of it that way.

[bgageus]

Do we know of any small distillery in NY?

Rep Hinchey, Maurice D. [NY-22] (introduced 2/17/2011) Cosponsors (4)

Latest Major Action: 2/17/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

COSPONSORS(4), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)

Rep Michaud, Michael H. [ME-2] - 6/14/2011

Rep Pingree, Chellie [ME-1] - 5/3/2011

Rep Rahall, Nick J., II [WV-3] - 7/14/2011

Rep Terry, Lee [NE-2] - 5/3/2011

[StraightNoChaser]

Do we know of any small distillery in NY?

Rep Hinchey, Maurice D. [NY-22] (introduced 2/17/2011) Cosponsors (4)

Latest Major Action: 2/17/2011 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

COSPONSORS(4), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)

Rep Michaud, Michael H. [ME-2] - 6/14/2011

Rep Pingree, Chellie [ME-1] - 5/3/2011

Rep Rahall, Nick J., II [WV-3] - 7/14/2011

Rep Terry, Lee [NE-2] - 5/3/2011

Tuthilltown Spirits? Although I don't really know just how small their production scale is

[cowdery]

Tuthilltown is leading the charge, and they are small enough. Who wouldn't be for it? I am. I'm thinking "Five Buck Chuck" as the name of my vodka, available only in 1.75 L plastic. I'm gonna be rich, finally.

[ebo]

Tuthilltown is leading the charge, and they are small enough. Who wouldn't be for it? I am. I'm thinking "Five Buck Chuck" as the name of my vodka, available only in 1.75 L plastic. I'm gonna be rich, finally.

[cowdery]

You won't be making any profits off of me. I'm not a big Vodka fan. :grin:

[emr454]

Do we know of any small distillery in NY?

Finger Lakes Distilling is in NY.

Eric

[StraightNoChaser]

Tuthilltown is leading the charge, and they are small enough. Who wouldn't be for it? I am. I'm thinking "Five Buck Chuck" as the name of my vodka, available only in 1.75 L plastic. I'm gonna be rich, finally.

I think you're serious :bowdown:

[cowdery]

Does anyone see any holes in my business plan?

[StraightNoChaser]

Yes, you haven't offered me a job!

[callmeox]

Does anyone see any holes in my business plan?

The winery who sells Two Buck Chuck wines will sue your ass for copying their name?

[cowdery]

The winery who sells Two Buck Chuck wines will sue your ass for copying their name?

No they won't. They're too cheap.

How about "Smirenough"?

I'll probably just call it "Crotchety."

[ebo]

No they won't. They're too cheap.

How about "Smirenough"?

I'll probably just call it "Crotchety."

"Crotchety Vodka"... it has a nice ring to it.

[craigthom]

The winery who sells Two Buck Chuck wines will sue your ass for copying their name?

"Two Buck Chuck" is a nickname created by customers for the Charles Shaw line.

Trader Joe's owns Charles Shaw, not a winery, and I'd be shocked if only one winery has produced it.

They may have registered the nickname as a trademark after the fact, but I'm sure "prior art" can be found on the Web, so our Chuck can fight it.

[sku]

"Two Buck Chuck" is a nickname created by customers for the Charles Shaw line.

Trader Joe's owns Charles Shaw, not a winery, and I'd be shocked if only one winery has produced it.

Actually, while Trader Joe's is the main (maybe now exclusive) retailer to market Charles Shaw, they don't own it. It's owned by the Bronco Wine Company which, as you noted, buys bulk wine for the label.

[barturtle]

Actually, while Trader Joe's is the main (maybe now exclusive) retailer to market Charles Shaw, they don't own it. It's owned by the Bronco Wine Company which, as you noted, buys bulk wine for the label.

Not exclusive, as in many states, if it's on the distributor's list, any licensed premises may purchase it. I recall this being an issue when Trader Joes moved into some state or another.

[smokinjoe]

"Two Buck Chuck" is a nickname created by customers for the Charles Shaw line.

Trader Joe's owns Charles Shaw, not a winery, and I'd be shocked if only one winery has produced it.

They may have registered the nickname as a trademark after the fact, but I'm sure "prior art" can be found on the Web, so our Chuck can fight it.

Oh yes, Chuck can not only fight it, he will will WIN it.

Remember....

Chuck Cowdery does not hunt, because the word hunting infers the probability of failure. Chuck Cowdery goes killing.

When the Boogeyman goes to sleep every night, he checks the closet for Chuck Cowdery.

Chuck Cowdery counted to Infinity...Twice.

Chuck Cowdery's tears cure cancer. Too bad he never cries.

If you see Chuck Cowdery, he can see you. If you can't see Chuck Cowdery, you may be only seconds away from death.

Even Chuck Norris fears Chuck Cowdery...

[tmckenzie]

I think everybody on adi forums thinks Chuck is the boogey man. They do not understand what he is saying is for their own good.

[craigthom]

Actually, while Trader Joe's is the main (maybe now exclusive) retailer to market Charles Shaw, they don't own it. It's owned by the Bronco Wine Company which, as you noted, buys bulk wine for the label.