Whether Congress will pass the Tax Cuts and Jobs Act is uncertain. If the bill does pass President Donald Trump is expected to sign it into law; and that means his Trump Winery will receive a nice tax cut as confirmed by a spokesperson for The Wine Institute, one of the organizations that supported the cut for wineries in the bill.
The bill currently includes large excise tax cuts for wineries and the extension of a tax credit. The government imposes an excise tax on sales of beer, wine, and spirits as one way to make revenue. The cost of these taxes is often included in the price of the beverage, and thus the cost is passed off to the consumer.
According to Wine Spectator, wineries are expected to get a tax cut ranging from 10 percent to 65 percent depending on their production volume. The bill would also offer a tax credit to larger wineries that had previously only been available to smaller wineries, and would make sparkling wine eligible for the credit for the first time – Trump Winery produces lots of sparkling wine, and has been claimed by the President to be the largest on the east coast. All wineries would be able to claim a credit between $0.54 and $1 per gallon on the first 750,000 gallons produced. In addition, wine with a 16 percent alcohol by volume or lower would be subject to the lowest tax rate, which used to only apply to wine with an alcohol by volume of 14 percent or lower.
As one might expect, the wine industry is pleased with the cuts and tax credits. “California wine is a signature industry for our state and nation. This legislation will greatly benefit our 4,700 wineries which produce 85% of our nation’s wine,” Robert P. Koch, President and CEO of Wine Institute said in a release. “We are the epitome of value-added agriculture and our wine and vineyards represent a long-term commitment that is uniquely tied to the land, generating jobs, tax revenue, trade, tourism and international appeal.”
These tax cuts and tax credits for wineries were originally part of a separate bill called the Craft Beverage Modernization Act, but were added to the current Tax Cuts and Jobs Act as an amendment. The House of Representatives is expected to hold a vote on the bill today, and the Senate should vote on Wednesday. If the bill passes both chambers of Congress, the president could sign it into law as early as the end of this week.
So while his wine may not be critically lauded, Trump’s signature will ensure it gets a big tax break.
