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Special Edition TTB Newsletter

December 28, 2020

CBMA PROVISIONS MADE PERMANENT

This special edition announces that the temporary reduced tax rates and tax credits made available by the Craft Beverage Modernization Act (CBMA) provisions of the Tax Cuts and Jobs Act of 2017 are now permanent.

On December 27, 2020, the President signed the Taxpayer Certainty and Disaster Tax Act of 2020 (Division EE of the Consolidated Appropriations Act, 2021), which made permanent most CBMA provisions of the Tax Cuts and Jobs Act of 2017.

The temporary CBMA provisions that are now permanent include:

• Reduced 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 who are not of the same ownership

New provisions include:

• 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

Updates to Guidance

We will issue updated guidance in the near future.  In the meantime, if you have questions about CBMA, please contact us.

For more information on imported products, please contact U.S. Customs and Border Protection.

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