Liquor distilleries helped with coronavirus, now they need help - Business Insider

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Opinion | American liquor distilleries shifted gears to help in the fight against coronavirus. Now Congress should help them. By Chris Swonger of DistilledSpirit.

, for example, is providing hundreds of gallons of hand sanitizer to first responders, healthcare agencies, and others in the community. All told, more than 700 distillers have stepped up to help stop the spread COVID-19.

The spirits industry experienced a short-term boost as Americans stocked up on alcohol while preparing to shelter-in-place. But this demand is expected to dissipate in the coming weeks and doesn't help restaurant owners and small distilleries, whose now-closed tasting rooms generate 40% of their total sales.

Obviously, the stimulus measures Congress has passed will help. The forgivable loans for small businesses and the streamlined underwriting process could provide short-term relief, helping many craft distilleries stay afloat and keep employees on the payroll. The administration should also keep reduced excise tax rates in place. Many Americans have noticed an influx of craft spirits at their local markets and in their communities over the last couple of years. One key reason was the 2017 tax reform package, which included the Craft Beverage Modernization and Tax Reform Act. The provision lowered the excise tax to $2.70 per proof-gallon for the first 100,000 proof gallons — a huge boost to entrepreneurship in the industry.

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DistilledSpirit They should be receiving lots of help ASAP

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