TTB NEWSLETTER | Weekly News

December 23, 2019
Special Edition

IN THIS ISSUE

Greetings! This special edition announces that the Craft Beverage Modernization and Tax Reform provisions of the Tax Cuts and Jobs Act of 2017 have been extended through 2020.

On December 20, 2019, the President signed into law the Further Consolidated Appropriations Act, 2020, which among other things, extends the Craft Beverage Modernization (CBMA) provisions of the Tax Cuts and Jobs Act of 2017 for one year, through December 31, 2020.

Extended CBMA 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

You may read more about each of these provisions in the Summary of Excise Tax Provisions section of our Tax Cuts and Jobs Act of 2017 page.

Transfer of Certain Wine Tax Credits

In addition to extending the 2017 CBMA provisions, the new law also 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. Additionally, as of January 1, 2020, the alternate procedure authorized by Industry Circular 2018-1A will no longer be in effect. We will be making significant updates to the applicable wine FAQs to reflect this change. We will also publish guidance for bonded wine cellars and wineries that would like to retroactively transfer wine tax credits for 2018 and 2019 removals.

Updates to Guidance

We will be making updates to the applicable CBMA guidance that appears on our Tax Cuts and Jobs Act of 2017 page in the near future. In the meantime, if you have questions about CBMA, please contact us using the Regulations and Rulings Division contact form.

Additional Information

- Visit our Tax and Fee Rates page to see the tax rates for distilled spirits, wine, and beer removed or imported in calendar years 2018 – 2020.
- Read more about the CBMA on our Tax Cuts and Jobs Act of 2017 page.

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