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Tax Reform – Craft Beverage Modernization Act (CBMA)

        

 

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

New CBMA import provisions:

For information on new procedures beginning Fall 2022 for imports beginning January 1, 2023, see TTB's page on new import provisions.

Updates to Guidance

We are continuing to update guidance related to CBMA and will make it available on this page as it becomes available. 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 AnswersNew CBMA Guidance on Distilled Spirits
 

 

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.

 

 

 

 

 

 

 

Page last reviewed: September 30, 2021
Page last updated: September 23, 2022 
Maintained by: Regulations and Rulings Division