In recent years, craft distilleries across the country have emerged in a trend similar to the thriving craft beer market. However, one key difference is that distilleries, regardless of size, are often heavily regulated by state and federal authorities compared to their brewery counterparts. In an effort to modernize post-prohibition era rules that are inhibiting a growing national trend, many states are taking action to ease regulatory burdens on the craft liquor industry.
In 2015, Sen. Ron Wyden, D-Ore., introduced the Craft Beverage Modernization and Tax Reform Act (“CBMTRA”) to the Senate. The bill was designed to restructure tax rates on alcohol production for beer, wine, and certain distilled spirits. The bill was gaining wide support, and was accompanied by a similar bill in the House of Representatives. However, due to the recent shakeup in Congressional seats, the re-introduced bill is now in need of new supporters from the Senate. A