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Tax Reform (CBMTRA) – Craft Beverage Modernization Act

        

 

NOTICE

On December 27, 2020, the President signed the Taxpayer Certainty and Disaster Tax Act of 2020 which made permanent most CBMA provisions of the Tax Cuts and Jobs Act of 2017, while changing some provisions.

The temporary CBMA provisions that are now permanent include:

Changes to previous CBMA provisions include:

  • Restrictions on the transfer of bottled distilled spirits in bond
  • Changes to the type of processing activities that qualify for reduced tax rates for distilled spirits (effective in January 2022)
  • Changes to the Single Taxpayer provisions

Updates to Guidance

We will issue updated guidance in the near future.  In the meantime, if you have questions about CBMA, please contact us.

For more information on imported products, please contact U.S. Customs and Border Protection.

 

Summary of CBMA ProvisionsCurrent Tax RatesPublic GuidanceGeneral Tax Reform Questions and Answers
Beer Tax Reform Questions and Answers
Wine Tax Reform Questions and Answers
Distilled Spirits Tax Reform Questions and Answers
MNBP Tax Reform Questions and Answers
 

 

Overview of the History of CBMA

  • 2017:  The Tax Cuts and Jobs Act made extensive changes to the Internal Revenue Code of 1986 (IRC), including provisions known as CBMA, which relate to Federal excise taxes on distilled spirits, wine, and beer. Those changes were effective calendar years 2018 and 2019. 

  • 2019:  The Further Consolidated Appropriations Act, 2020, among other things, extended the CBMA provisions through calendar year 2020, and allowed domestic wineries to transfer CBMA tax credits.

  • 2020:  In addition to making most CBMA provisions permanent, the Consolidated Appropriations Act of 2021 made several notable changes, some of which were effective January 1, 2021, and others that will take effect in 2022 or 2023.

 

Summary of CBMA Provisions for Distilled Spirits, Wine, and Beer

The highlights of the CBMA provisions that were made permanent starting in 2021 are summarized below, as are the Key Changes. These summaries are not intended to establish any policies regarding these provisions, but merely to summarize them.

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Note: The guidance below was issued in response to the CBMA provisions that were in effect 2018 through 2020. We are actively working to update this guidance to reflect CBMA provisions in effect as of January 1, 2021.

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Green icon with a white phone. CONTACT US

Please send us your questions about Craft Beverage Modernization and Tax Reform using the Regulations and Rulings Division contact form. TTB is developing responses to questions for future updates to this page.

Please direct correspondence to:

Alcohol and Tobacco Tax and Trade Bureau
Director, Regulations and Rulings Division
1310 G Street, NW., Box 12
Washington, DC 20005

 

 

 

 

 

 

 

Page last reviewed: January 12, 2018
Page last updated: January 8, 2021 
Maintained by: Regulations and Rulings Division