SPIRIT Act
Tax Credits for Small Distilleries Using American Ingredients
The SPIRIT Act was recently introduced in the House and is currently being reviewed by the Committee on Ways and Means. No further actions are scheduled at this time. The bill is considered active as it begins the early stages of the legislative process.
Legislative Progress
While the bill has bipartisan support, standalone tax credits for specific industries often struggle to pass unless they are added to a much larger year-end spending package.
Key Points
- This bill creates a new tax credit for small distilleries that use ingredients grown in the United States. To qualify, a distillery must produce no more than 100,000 gallons of spirits per year and source at least 90 percent of its materials from American farmers.
- Eligible businesses would see their federal taxes drop by $2.35 for every proof gallon they produce. This change is designed to help local craft distilleries lower their costs and encourage them to support domestic agriculture instead of buying cheaper imported ingredients.
- The tax break would apply to spirits made after December 31, 2025. If a business claims the credit but later fails to meet the production or sourcing rules, the government will require them to pay back the full amount of the tax savings.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
SPIRIT Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.