Contact your Congress member regarding Bill #777 !
Find your Congress member through the website http://www.house.gov/. The site is
The Bill on which we have all been working so hard has finally been introduced
to Congress and assigned #777. Please contact your local Congressman and Senators
requesting their support of this very important Bill.
For your convenience we have prepared a letter (below) that could be used
when reaching out to your representatives. Feel free to use the letter as written,
specific excerpts, or your own wording entirely.
If you believe tax parity with vinters and brewers is an important force for job
creation, tourism, and agricultural development, please use this letter as a draft
and send it to the members of the House Ways and Means Committee listed below.
-ADI Legislative Committee
The United States is in the midst of a resurgence in distilling, a craft that began with our founding fathers, George Washington, Thomas Jefferson, and others whose early 19th Century whiskey production helped revitalize the colonial economy following the Revolutionary War.
Prohibition drove hundreds of distillers out of business or underground in the 1920s, and following reppeal, only a few smaller operations were able to reestablish viable businesses in the face of competition from larger U.S. and international distillers. That situation has changed dramatically in recent years. Americans have built more than 150 craft distilleries in 40 states, learning the lost art forms, producing some of the world’s finest spirits, and complementing other regional small businesses.
Many small distillers are now building distribution networks with licensed wholesalers throughout the nation. One of the biggest impediments to our ability to grow and succeed is the federal excise tax on distilled spirits, currently at $13.50 per proof gallon. This regressive tax dates back to the second bill enacted by the U.S. Congress, which levied taxes on domestic and imported alcohol beverages. The tax applies to distillers of all size regardless of their profitability, making it a tremendous challenge for startup companies with limited capital and high initial costs for equipment, ingredients, and other business necessities.
To provide some relief to this new class of American entrepreneurs, Congressman Hinchey of NY State has introduced H.R. #777, a bill that would reduce the federal distilled spirits excise tax rate to $2.70 per proof gallon for distillers that produce fewer than 65,000 gallons annually. This discounted tier structure mirrors what the small beer and wine producers have enjoyed for decades and how that’s helped micro brewers and small wineries to flourish throughout the country.
This tax reduction will create parity for craft distillers with existing tax legislation for vintners and brewers and will enable these small distilleries to invest in new equipment and provide new, high-quality and sustainable jobs in communities across the United States.
We urge you to support HR 777. This bill is good for America.