01/13/2021 | Press release | Distributed by Public on 01/13/2021 14:40
Posted 01/13/2021 by the Office of Communications
On December 27, 2020, the President signed the Taxpayer Certainty and Disaster Tax Act of 2020, which made most Craft Beverage Modernization Act (CBMA) provisions of the Tax Cuts and Jobs Act of 2017 permanent.
The legislation included several notable changes to earlier CBMA provisions, some of which were effective January 1, 2021, and others that will take effect in 2022 or 2023.
Permanent CBMA Provisions
The temporary CBMA provisions that are now permanent include:
Key Changes to Earlier CBMA Provisions
Changes to previous CBMA provisions include:
Transfers of non-bulk beverage distilled spirits are limited
Beginning January 1, 2021, the law prohibits the transfer of bottled spirits in bond except:
Single taxpayer provision for distilled spirits includes processing
Beginning January 1, 2021, entities who process distilled spirits are included in the Single Taxpayer provision for distilled spirits. Pursuant to rules issued by the Secretary, two or more entities (whether or not under common control) that produce or process distilled spirits under a license, franchise, or other arrangement shall be treated as a single taxpayer.
Bottling distilled spirits will not be processing for reduced rate purposes
Effective January 1, 2022, only distilled spirits plants who perform a processing activity other than bottling are entitled to take a CBMA reduced rate on distilled spirits that they process and remove.
Imports and foreign producer election
To learn more about the CBMA, please visit our main CBMA page.
Updates to Guidance
We will issue updated CBMA guidance in the near future. For now, if you have questions about CBMA, please contact us.
For more information on imported products, please contact CBP.
Page last reviewed: January 13, 2021
Page last updated: January 13, 2021
Maintained by: Office of Communications