Small Spirits Makers' Equal Tax Act - The American Distilling Institute

Goal
To help support the recent expansion and to encourage further growth of small U.S.-based spirits
manufacturing by creating a reduced federal excise tax rate for small-scale distilled spirits makers that
mirrors the current reduced tiers for small beer and wine producers.
Background
The distilled spirits industry has enjoyed a renaissance of local, artisan production of unique spirits over
the last five years. Our numbers have swelled from less than 40 licensed makers in 2003 to more than
200 in 2010. Because of our efforts, consumers in America and abroad are beginning to experience
innovation and quality in spirits similar to what took place with micro-brewers in the 1980s-1990s and
independent winemakers in the 1970s-1980s. (Today, many of these brands — such as Sam Adams,
Anchor Steam, Mondavi and Kendal Jackson — are not only trend leaders but also sizeable businesses.)
What made the growth of small beer and wine makers possible — other than hard work and passion —
was a reduced federal excise tax rate that allowed them to make and sell artisan products without the
economies of large-scale production. Today, small-scale beer producers pay 39% of the full federal
excise tax that medium and large producers pay. Similarly, small producers of average-proof wine
(