Indiana Congressman Todd Young, R-Indiana, Tuesday introduced a bill will help both small and large distilleries grow by reducing taxes on distilled spirits.
The current tax rate for distilled spirits is $13.50 per proof gallon. Under the Distillery Innovation and Excise Reform Act, the tax rate would be reduced to $2.70 per proof gallon on the first 100,000 gallons of production and $9.00 per gallon thereafter. This will make it cheaper for distilleries to produce alcohol.
Rep. John Yarmuth, D-Kentucky, joined Young in introducing the bill.
Young says he hopes the bill incentivizes distilleries in southern Indiana and northern Kentucky to grow.
“This will lead to more jobs, this will lead to higher pay, and hopefully this will lead to continued expansion of these sorts of businesses throughout southern Indiana and beyond,” says Young.
According to the Distilled Spirits Council and the American Craft Spirits Association, currently more than half the purchase price of a bottle of spirits is used for taxes and fees, making it one of the most heavily taxed products in the country.
Adam Quirk, owner of Bloomington distillery Cardinal Spirits says this act would be beneficial to Indiana distilleries.
“Wineries and breweries already have a lower tax rate and craft wineries and craft breweries have the lower tax rate so this is about lowering the playing field for craft distilleries,” says Quirk.
Young says he hopes the bill will pass this session, but if not he will re-introduce it next session.