The President signed into law the Tax Cuts and Jobs Act (Public Law 115-97) ("the Act"), which makes extensive changes to the Internal Revenue Code of 1986 (IRC), including provisions related to alcohol that are administered by TTB. Those changes are effective January 1, 2018.

The impact to you is meaningfully lower excise taxes for your business in 2018 and 2019.

To summarize the impact, the Federal Excise Tax (FET) rates (and subsequent savings) for Distilled Spirits, Wine, and Beer removed from bond (domestic) or imported in calendar years 2018 and 2019 are as follows:

Distilled Spirits: With an FET decrease from $13.50 per proof gallon to $2.70 per proof gallon on the first 100,000 proof gallons removed from bond (domestic) or imported, the savings on a 12/750ml (9.00L) case of a distilled spirit at 40% abv would be $20.54 per case.  With an FET decrease from $13.50 per proof gallon to $13.34 per proof gallon over 100,000 proof gallons up to 22,230,000 proof gallons, the savings on a 12/750ml (9.00L) case of a distilled spirit at 40% abv would be $0.31 per case.  It is important to note that the foreign distilled spirits producer must elect under procedures prescribed by TTB to assign to an importer and the importer to receive the reduced rates of tax or credits for shipments of its products.

Wine (16% abv and under/Mead/low alcohol wine):  With an FET decrease from $1.07 per wine gallon to $0.07 per wine gallon on the first 30,000 wine gallons removed from bond (domestic) or imported, the savings on a 12/750ml (9.00L) case or under would be $2.38 per case.  With an FET decrease from $1.07 per wine gallon to $0.17 per wine gallon over 30,000 wine gallons up to 130,000 wine gallons, the savings on a 12/750ml (9.00L) case would be $2.14 per case.  With an FET decrease from $1.07 per wine gallon to $0.535 per wine gallon over 130,000 wine gallons up to 750,000 wine gallons, the savings on a 12/750ml (9.00L) case would be $1.27 per case. Please note that the foreign wine producer must elect under procedures prescribed by TTB to assign to an importer and the importer to receive the reduced rates of tax or credits for shipments of its products.

Wine (over 16% abv-21% abv):  With an FET decrease from $1.57 per wine gallon to $0.57 per wine gallon on the first 30,000 wine gallons removed from bond (domestic) or imported, the savings on a 12/750ml (9.00L) case would be $2.38 per case.  With an FET decrease from $1.57 per wine gallon to $0.67 per wine gallon over 30,000 wine gallons up to 130,000 wine gallons, the savings on a 12/750ml (9.00L) case would be $2.14 per case.  With an FET decrease from $1.57 per wine gallon to $1.035 per wine gallon over 130,000 wine gallons up to 750,000 wine gallons, the savings on a 12/750ml (9.00L) case would be $1.27 per case. It is important to note that the foreign wine producer must elect under procedures prescribed by TTB to assign to an importer and the importer to receive the reduced rates of tax or credits for shipments of its products.

Wine (over 21% abv-24% abv):  With an FET decrease from $3.15 per wine gallon to $2.15 per wine gallon on the first 30,000 wine gallons removed from bond (domestic) or imported, the savings on a 12/750ml (9.00L) case would be $2.38 per case.  With an FET decrease from $3.15 per wine gallon to $2.25 per wine gallon over 30,000 wine gallons up to 130,000 wine gallons, the savings on a 12/750ml (9.00L) case would be $2.14 per case.  With an FET decrease from $3.15 per wine gallon to $2.615 per wine gallon over 130,000 wine gallons up to 750,000 wine gallons, the savings on a 12/750ml (9.00L) case would be $1.27 per case. It is important to note that the foreign wine producer must elect under procedures prescribed by TTB to assign to an importer and the importer to receive the reduced rates of tax or credits for shipments of its products.

Beer: With an FET decrease from $18.00 per barrel to $16.00 per barrel on the first 6,000,000 barrels imported, the savings on a 24/330ml (7.92L) case would be $0.13 per case.  It is important to note that the foreign beer producer must elect under procedures prescribed by TTB to assign to an importer and the importer to receive the reduced rates of tax or credits for shipments of its products.

TTB is currently assessing the impact of these changes on TTB forms, regulations, and systems, and will update this page with additional guidance and information as it becomes available

For more information visit: https://ttb.gov/tax_audit/atftaxes.shtml