What is the CBMTRA?

The Craft Beverage Modernization and Tax Reform Act has been introduced in several sessions of Congress. It is a draft bill that attempts to address many things across a wide spectrum of craft beverages.

Full text: https://www.congress.gov/bill/115th-congress/senate-bill/236/text#toc-id8D9833A0826147C1BB0AB853DC7ED7B8

What does it mean for mead?

Currently, the CBMTRA does several good things for meaderies:

  • It extends the small producer tax credit for all wineries (including meaderies)
  • Raising the limit for the highest tax bracket from 14% to 16%
  • Eliminating the “bubble tax” on meads so that certain meads would be able to be carbonated past 2 volumes without additional taxation.

However, there are some things that are not good:

  • It defines mead very narrowly for the sake of the “bubble tax” break
  • Only unflavored meads under 8.5% would be eligible for this tax break

What should we do?

The AMMA board is in dialogues with the sponsors of this bill to propose new, less restrictive language.

In the meantime, when speaking to your representatives, stress the following points:

  • The definition of mead should be “A beverage whose alcohol is derived at least 51% from the fermentation of honey”
  • Meads that include fruit should be included in the bubble tax break

American Mead Makers Association Contact Info

Greg Heller-LaBelle

Legislative Committee Chairperson – American Mead Makers Association

Co-Founder / CEO – Colony Meadery, Allentown, PA

legislative@mead-makers.org

More information on how to get involved

  • Setup meetings with congressperson(s)
  • Press contact
  • General AMMA Legislative Info

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